When will cryptocurrencies be regulated by the FATF?

The FATF has stated that it will give countries 12 months to adopt the guidelines, with a review set forJune 2020. 14 There are concerns that the regulatory costs and increased disclosure required to comply with the travel rule will push holders of cryptocurrency out of the regulated cryptocurrency space.

Are cryptocurrencies regulated?

Recent regulatory advances, including the release of the Markets in Crypto-Assets (MiCA) provisional agreement in the EU and the release of the Framework for International Engagement on Digital Assets in the US, signal a desire to provide regulatory clarity in this space.

When did the FATF update its guidance for a risk-based approach?

In October 2021, the FATF updated its 2019 Guidance for a Risk-Based Approach for Virtual Assets and Virtual Asset Service Providers (VASPs). This updated guidance forms part of the FATF’s ongoing monitoring of the virtual assets and VASP sector.

What are FATF standards for virtual asset financial services (VASPs)?

The FATF standards require countries to assess and mitigate their risks associated with virtual asset financial activities and providers; license or register providers and subject them to supervision or monitoring by competent national authorities. VASPs are subject to the same relevant FATF measures that apply to financial institutions.