A popular global anti-money laundering (AML) agency – Financial Action Task Force (FATF) updates its guidance for the virtual asset sector.
Notably, FATF reveals additional regulation clarifications on six key crypto topics.
Which of course, includes the definition of virtual assets (VA) and virtual asset service providers (VASPs). Also, stablecoin guidance, peer-to-peer (P2P) risk mitigation, VASP registration and licensing. Then, guidance on the “travel rule,” and information sharing amongst VASPs. Of course, These are listed by Financial Action Task Force.
More so, FATF targets to define the make up of a VASP.
Additionally, the Updated Guidance for a Risk-Based Approach for Virtual Assets and Virtual Asset Service Providers includes,
“Updated guidance on how stablecoins, non-fungible tokens (NFTs),..”
“decentralized finance (DeFi) and decentralized or distributed applications (DApp)…”
“and multisignature arrangements relate to the FATF Standards.”
Furthermore, FATF details how countries can use the “travel rule” in crypto assets.
More so, The travel rule urges that governments force exchanges, banks, over-the-counter (OTC) desks. Also, hosted wallets to share identifying information about people’s crypto transactions worth more than $10,000.
Lastly, FATF president Marcus Pleyer says the new guidance updates previous policies and strategies.
“[It] builds on our guidance that we issued in 2019 to explain how the FATF…”
“recommendations apply to virtual assets and their service providers, and in particular…”
“the guidance clarifies the definitions of virtual assets and VASPs.”
“It explains how the FATF standards apply to stablecoins,…”
“and it addresses the risk for peer-to-peer transactions and…”
“illustrates tools to identify and mitigate these risks.”
