FATF Has Updated its Global Guidelines for the Regulation of Virtual Assets. The <a href="https://www.cryptoknowmics.com/news/to-comply-with-the-fatf-travel-rule-use-tether-trials/">Financial Action Task Force</a> (FATF), an international organization that sets standards for anti-money laundering and counter-terrorist financing (AML/CFT), provided revised recommendations on the compliance risks associated with virtual assets on October 28, 2021.
<h2>FATF Updates Global Guidelines Regarding the Regulation of Virtual Assets </h2>
The Guidance for an Updated Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers (Guidance) is designed to assist government agencies in developing <a href="https://www.skadden.com/insights/publications/2021/11/recent-developments-in-the-regulation-of-virtual-assets/fatf-updates-its-global-guidelines">regulatory</a> responses to virtual assets (VAs), such as virtual asset service providers and cryptocurrency (VASPs). It will also assist individuals involved in VA operations in better understanding their risk of money laundering and terrorism funding, as well as how to meet their compliance duties.
<ul>
 	<li style="font-weight: 400">Applying the VA Definition to Emerging Technologies</li>
</ul>
According to the definition published in the first edition of the Guidance in 2019, a "virtual asset" is a "digital representation of value that may be digitally exchanged or transferred and utilized for payment or investment purposes." 
<ul>
 	<li style="font-weight: 400">Considerations for VASP Licensing and Registration</li>
</ul>
The Guidance delves into the concept of a VASP as well as what defines a VA for the FATF Standards. 
<ul>
 	<li style="font-weight: 400">Peer-to-Peer Transactions</li>
</ul>
A peer-to-peer (P2P) transaction is defined by the Guidance as a VA transfer "conducted without the use or aid of a VASP or other obligated organization."
<ul>
 	<li style="font-weight: 400">Decentralized Finance</li>
</ul>
A decentralized or distributed application (<a href="https://www.cryptoknowmics.com/news/pocket-arena-the-biggest-nft-dapp-mobile-gaming-platform/">DApp</a>) is a software program that uses blockchain or comparable technologies to run. 
<ul>
 	<li style="font-weight: 400">Continued Focus on Travel Rule Compliance Challenges in the VA Industry</li>
</ul>
Many paragraphs in the Guidance are devoted to the application of FATF Recommendation 16 of the FATF Standards to VAs and VASPs.
<h2>Information Sharing and Cooperation Among AML/CFT Regime Implementing Countries for VAs and VASPs</h2>
FATF highlights principles of information exchange and collaboration among government entities tasked with the regulation and supervision of VAs and VASPs in the Guidance's concluding section. The Guidance emphasizes the importance of information sharing and cooperation among government authorities when it comes to identifying VAs and VASPs that may be subject to AML/CFT regulatory requirements.

FATF has Updated its Global Guidelines for the Regulation of Virtual Assets

FATF Has Updated its Global Guidelines for the Regulation of Virtual Assets. The Guidance for an Updated Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers (Guidance) is designed to assist government agencies in developing regulatory responses to virtual assets.

Gitumani is a blockchain enthusiast as she keeps a tab on the recent happenings pertaining to the crypto industry. She aims to provide quality content in blockchain and crypto domain. She is a financial content writer too and has worked on several financial projects related to the stock market news, fundamental research, and technical analysis for several websites.

FATF has Updated its Global Guidelines for the Regulation of Virtual Assets

Top Picks