BTCC
/
BTCC Square
/
Global Cryptocurrency
/
FATF Warns of Regulatory Gaps Exploited by Offshore Virtual Asset Firms
FATF Warns of Regulatory Gaps Exploited by Offshore Virtual Asset Firms
16
1
BTCCSquare news:
The Financial Action Task Force (FATF) has issued a stark warning about offshore virtual asset service providers (VASPs) circumventing cross-border regulations. These entities, often operating without proper licensing, pose significant money laundering and terrorist financing risks.
Despite 2019 AML standards extending to crypto exchanges and custodians, enforcement remains patchy globally. The lack of physical presence in user jurisdictions allows these firms to evade oversight while servicing international clients.
Regulators highlight the urgent need for coordinated action as the borderless nature of crypto operations continues to challenge traditional supervisory frameworks.
By:
