FATF agrees on roadmap for implementation of crypto standards

The Financial Action Task Force (FATF) has reported that its representatives have reached agreement on an action plan to “promote the timely global implementation” of global standards for cryptocurrencies.

In its February 24 publication, the FATF Said Plenary Meeting of Financial Watchdogs Consisting of Representatives from Over 200 Jurisdictions Meets in Paris on Roadmap Aimed at Enhancing Implementation of FATF Standards for Virtual Assets and Virtual Asset Service Providers Agreed. In 2024, the task force will report on how his FATF members have progressed in implementing cryptocurrency standards, including regulation and oversight of his VASP.

The lack of regulation of virtual assets in many countries creates opportunities for criminals and terrorist financiers to exploit, the report said. Since the FATF strengthened Recommendation 15 to address virtual assets and virtual asset service providers in October 2018, many countries have failed to implement these revised requirements. It includes travel rules that require us to obtain, retain and transmit information about originators and beneficiaries. virtual asset trading.

The FATF plenary has closed. Government representatives from around the world discussed various money laundering and terrorist financing issues.

Click here for the results of the plenary session https://t.co/FdC6ILFNRW
#FollowTheMoney pic.twitter.com/Ja0tLFrca5

FATF (@FATFNews) February 24, 2023

Some of the FATF’s “Travel Rules” include recommendations that VASPs, financial institutions and regulated bodies in member countries obtain information about the originators and beneficiaries of certain cryptocurrency transactions. . As of April 2022, financial watchdogs reported that many countries were not adhering to their standards on combating the financing of terrorism (CFT) and anti-money laundering (AML).

Related: AML and KYC: Catalysts for Mainstream Crypto Adoption

Japan, South Korea and Singapore are among the countries that appear to be the most proactive in enforcing restrictions in line with travel rules. Some countries, including Iran and North Korea, have reportedly been placed on the FATF’s “grey list” to monitor questionable financial activity.