FATF said that its members have agreed to drive rapid global implementation of international regulations regarding cryptocurrencies.
In a statement released on February 24, the FATF stated that its plenary, which includes representatives from more than 200 countries, convened in Paris and reached agreement on a roadmap to increase “application of FATF Standards on virtual assets and virtual asset service providers.”
The task force states that it will provide a report on the progress made by FATF members in implementing the crypto standards, including the regulation and oversight of VASPs, in 2024.
“The lack of regulation of virtual assets in many countries creates opportunities that criminals and terrorist financiers exploit,” said the report. “Since the FATF strengthened its Recommendation 15 in October 2018 to address virtual assets and virtual asset service providers, many countries have failed to implement these revised requirements, including the ‘travel rule’ which requires obtaining, holding and transmitting originator and beneficiary information relating to virtual assets transactions.”
The FATF’s “Travel Rule” calls for financial institutions, regulated organizations, and VASPs to gather data on the parties who initiated and benefited from specific virtual currency transactions.
According to the financial watchdog, numerous nations did not adhere to its rules for preventing the financing of terrorism and money laundering as of April 2022.
Among the nations that seem to be most eager to put laws into place that adhere to the travel rule are Singapore, South Korea, and Japan. According to reports, some countries, including Iran and North Korea, have been added to the FATF’s “grey list” for monitoring shady financial activity.
