FATF agrees on roadmap for implementation of crypto standards

The Financial Action Task Force, oregon FATF, reported its delegates had travel to an statement connected an enactment program “to thrust timely planetary implementation” of planetary standards connected cryptocurrencies.

In a Feb. 24 publication, the FATF said the plenary for the fiscal watchdog — consisting of delegates from much than 200 jurisdictions — met successful Paris and came to a statement connected a roadmap aimed astatine strengthening “implementation of FATF Standards connected virtual assets and virtual plus work providers”. According to the task force, successful 2024 it volition study connected however FATF members person moved guardant connected implementing the crypto standards, which includes regularisation and supervision of VASPs.

“The deficiency of regularisation of virtual assets successful galore countries creates opportunities that criminals and violent financiers exploit,” said the report. “Since the FATF strengthened its Recommendation 15 successful October 2018 to code virtual assets and virtual plus work providers, galore countries person failed to instrumentality these revised requirements, including the ‘travel rule’ which requires obtaining, holding and transmitting originator and beneficiary accusation relating to virtual assets transactions.”

Part of the FATF's ‘Travel Rule’ includes recommendations that VASPs, fiscal institutions, and regulated entities successful subordinate jurisdictions get accusation connected the originators and beneficiaries of definite virtual currency transactions. As of April 2022, the fiscal watchdog reported that galore countries were not successful compliance with its standards connected Combating the Financing of Terrorism (CFT) and Anti-Money Laundering (AML).

Related: AML and KYC: A catalyst for mainstream crypto adoption

Japan, South Korea and Singapore person been among the countries seemingly most consenting to instrumentality regulations successful accordance with the question rule. Some nations including Iran and North Korea person reportedly been placed connected the FATF’s ‘grey list’ for monitoring suspicious fiscal activity.