December 4, 2021

FATF To Release Updated Cryptocurrency Guidelines October 28

FATF To Release Updated Cryptocurrency Guidelines October 28

The Financial Action Task Force on Money Laundering (FATF) has finalized its guidance on cryptocurrencies and plans to publish an updated version of the document next week.

According to FATF President Markus Player, the newthe editors do not change the current standards related to digital assets or companies working with them, but rather clarifies the mechanisms for their implementation.

The first version of the 2019 guidance called on crypto exchanges, DeFi platforms and payment systems to adhere to the same rules and mechanisms used in the fieldtraditional finance. However, the industry has faced the technical challenges of implementing the Travel Rule, which requires companies to collect and share information about the parties to transactions in transactions worth more than $ 1,000. The problem lies in the lack of solutions for the secure transmission of data about counterparties.

In the updated version, the FATF pledged to clarifykey principles and problematic aspects of the application of standards. In particular, an expanded definition of the risks of peer-to-peer transactions, stablecoins, operators and virtual asset providers (VASP), their licensing and registration process will be given, as well as options for solving the problems of Travel Rule implementation and data exchange will be described.

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