FATF to revise rules governing the crypto industry in March

The Financial Action Task Force (FATF) has begun accepting feedback to amend the rules governing the digital asset industry. The new version is slated for release in the first week of March.

“The updated guidance will help countries and virtual asset service providers (VASPs) understand their obligations and effectively comply with FATF requirements in key areas,” the organisation said.

In June 2019, the FATF decided to tighten its oversight of the cryptocurrency industry. In particular, it would require Bitcoin exchanges and other VASPs to comply with AML and CFT (anti-money laundering and counter-financing of terrorism) procedures, modeled on those of traditional financial companies.

An implementation period of one year was allocated, after which FATF President Marcus Pleyer said there was a need to adjust the guidance for the crypto industry, as many countries had not fully implemented the standards adopted earlier.

In October 2020, a consortium of leading US cryptocurrency companies presented a plan for its members to comply with AML/CFT requirements.

In November, FATF’s Executive Secretary David Lewis said that crypto companies face a long road to full compliance with the norms. He said they are only beginning to adapt to regulatory requirements that many countries have already incorporated into their legislation.

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