FATF urges faster adoption of revised standards for the crypto industry

Most FATF-supervised jurisdictions have not yet implemented requirements for crypto-asset firms. This is stated in a notice following the organization’s plenary meeting.

Currently, FATF standards are in force in 58 of 128 jurisdictions. Virtual asset service providers (VASPs) are regulated in 52 countries, with six banning their operation.

«However, most jurisdictions have not yet implemented FATF requirements, including “Travel Rule”. This hinders further investments in the necessary technological solutions and compliance infrastructure», — the organisation said.

The FATF urged countries to implement the revised standards as quickly as possible.

The organisation also drew attention to the role of cryptocurrencies in ransomware attacks. The regulator plans to develop measures to reduce the risks of using virtual assets in illicit activity.

In March, the Group proposed amendments to the regulatory guidance for the crypto industry. In particular, experts clarified the wording of decentralized exchanges and the mechanisms ensuring the operation of platforms and applications. Due to the volume of comments, the FATF pushed back the deadline for final approval of the document to October.

In June 2019, the regulator decided to require Bitcoin exchanges and other VASPs to comply with anti-money laundering and counter-terrorist financing rules on par with traditional financial firms.

Later, FATF President Marcus Pleyer said there was a need to adjust the regulatory guidance for the crypto industry, as many countries had not fully implemented the previously adopted standards.

In October 2020, the consortium of leading U.S. crypto firms presented a plan for compliance by its members with FATF requirements.

As reported in late February 2021, the regulator began soliciting feedback for revisions to the regulatory rules.

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