FATF Recommends Heightened Restrictions On Virtual Assets And Service Providers
In its updated guidance on virtual assets and virtual asset service providers, the FATF recommends requiring more strict KYC/AML measures.The Financial Action Task Force (FATF) has updated its “Guidance for a risk-based approach to virtual assets and VASPs.” Previous FATF guidance, released in 2015 and updated in 2019, has recommended regulating virtual assets in a similar way to traditional finance, mandating customary KYC/AML laws that affect most financial entities.The new updates would alter this dramatically, encouraging heightened restrictions and surveillance on virtual asset....
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On March 19, the Financial Action Task Force (FATF) published draft guidance on the risk-based approach to virtual assets. The newly updated guidance now applies anti-money laundering and know-your-customer rules to stablecoins, decentralized finance (defi), and non-fungible token (NFT) assets. FATF Defines Decentralized Exchanges and Defi as a Virtual Asset Service Providers For a while now, cryptocurrency proponents have said that one day, global regulators would likely target decentralized finance (defi) and the latest non-fungible token (NFT) hype. For a while now, the Financial Action....
A great number of cryptocurrency businesses are preparing for the upcoming Financial Action Task Force (FATF) rules toward cryptocurrencies, specifically the Travel Rule. This month 25 Virtual Asset Service Providers (VASPs) published a paper that outlines how American-based VASPs aim to comply with the FATF Travel Rule. Digital currency companies, otherwise known as Virtual Asset Service Providers (VASPs) in the eyes of global regulators are concerned about regulation and compliance this year. In fact, in the recent report written by the Digital Currency Group (DCG), the survey’s....
Despite DeFi apps not being VASPs under the FATF standards, the authority still wants them regulated like VASPs. Decentralized finance, or DeFi, continues driving more interest from regulators and is becoming a part of the major international rules designed for virtual asset service providers, or VASPs.On Thursday, the Financial Action Task Force, or FATF, issued a new update to its 2019 guidance to a risk-based approach for virtual assets and VASPs, paying particular attention to the DeFi industry.The new guidance addresses issues identified in the FATF’s 12-month review of the revised....
“Countries that have not introduced Travel Rule legislation should do so as soon as possible, and FATF jurisdictions should lead by example," said the organization. The Financial Action Task Force (FATF) reported that 11 out of 98 responding jurisdictions have started enforcing its standards on Combating the Financing of Terrorism, or CFT, and Anti-Money Laundering, or AML.In an update released Thursday on the “Implementation of the FATF Standards on Virtual Assets and Virtual Asset Service Providers,” the FATF reported the “vast majority” of jurisdictions assessed by the organization’s....
The Financial Action Task Force (FATF) has published an update on their virtual assets and virtual asset service provides guidance with a special focus on the DeFi sector. A market gaining more attention from regulators and government agencies around the world, the FATF proposal could usher a new crackdown on crypto and related companies. Related […]