FATF Reveals Updated Guidelines On Crypto Assets & Service Providers.

FATF Reveals Updated Guidelines On Crypto Assets & Service Providers.

2021-02-26 | Robin Williams

FATF Reveals Updated Guidelines On Crypto Assets & Service Providers.

The FATF [Financial Action Task Force] revealed that it has set to publish an update to its guidelines on crypto assets and digital asset service providers; a catch-all term along with crypto exchanges, wallet providers, and custody platforms, among others. This updated document will also be made available for public consultation from key stakeholders. In line with a circular issued by the FATF today on Thursday, the choice to update its guidance on VASPs was the result of the organization’s three-day plenary session. As a part of its announcement, the intergovernmental that focuses on policies aimed toward combating money laundering & terrorist financing revealed that the updated guidelines are going to be published within the first week of March. The new guideline is going to be an update to the June 2019 document that introduced the travel rule compliance for VASPs. The FATF travel rule requires all VASPs to share transaction data for both senders & recipients on their platform. Within its 12-month review document revealed earlier in June last year, the FATF remarked that some progress had been made in implementing the cryptocurrency travel rule. An earlier report issued in March 2020 identified United States-based VASPs as largely compliant. Indeed, as earlier reported, Asian countries are reportedly leading the way in implementing the FATF travel rule with exchanges in Singapore and South Korea outlined the very best level of compliance. The upcoming updated FATF guideline for crypto-assets and VASPs will also cover stablecoins and cryptocurrency p2p transactions. In line with the FATF communique, feedback from the general public consultation will form a part of its final guidance on cryptocurrencies and VASPs to be approved later in June 2021. While the FATF maintains the necessity for risk-based supervision of cryptos and VASPs with reference to AML [Anti-Money Laundering] & Combating Terrorist Financing, it's important to notice that illegal cryptocurrency transactions still decline. Within its 2020 cryptocurrency crime report, blockchain intelligence firm Chainalysis added that crime-related transactions solely accounted for 0.34% of all crypto asset activity for the year. Indeed, both the proportion and actual dollar value of cryptocurrency crimes declined between 2019 & 2020.

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