The Financial Action Task Force (FATF) is ready to roll out new recommendations on how governments should regulate crypto assets.
The FATF is an inter-governmental agency that develops anti-money laundering standards and measures to prevent terrorism financing.
Speaking at a press conference, FATF president Marcus Pleyer says the new guidance will take a “risk-based approach” to virtual assets and virtual asset service providers (VASPs).
“It builds on our guidance that we issued in 2019 to explain how the FATF recommendations apply to virtual assets and their service providers, and in particular the guidance clarifies the definitions of virtual assets and VASPs.
It explains how the FATF standards apply to stablecoins, and it address the risk for peer-to-peer transactions and illustrates tools to identify and mitigate these risks.”
Pleyer also says the guidance will update the so-called “travel rule.”
The rule recommends that governments force exchanges, banks, over-the-counter (OTC) desks, and hosted wallets to share identifying information about people involved in crypto transactions worth more than $10,000.
The FATF president says that the agency expects governments and private sector entities to implement the new standards in the short term.
“This guidance has not changed the FATF standards on virtual assets and VASPs. This guidance provides more detailed information on how countries and the private sector can implement the FATF standards.”
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