The Financial Action Task Force (FATF) has announced that its delegates have agreed on an action plan for implementing global standards on cryptocurrencies. In a publication on Feb. 24, the FATF stated that is plenary, consisting of delegates from over 200 jurisdictions, met in Paris and reached a consensus on a roadmap for strengthening the implementation of FATF Standards on virtual assets and virtual asset service providers (VASPs).
FATF to Report on Crypto Standards Implementation in 2024
The FATF has stated that it will report on how its members have progressed in implementing the crypto standards in 2024. This includes regulation and supervision of VASPs. The report highlights the lack of regulation in many countries as a major concern, as it creates opportunities for criminals and terrorists to exploit.
"Travel Rule" Recommendations for VASPs and Financial Institutions
As part of the FATF's "Travel Rule," the organization has recommended that VASPs, financial institutions, and regulated entities in member jurisdictions obtain information on the originators and beneficiaries of certain digital currency transactions. The FATF reported in April 2022 that many countries were not in compliance with its standards for Combating the Financing of Terrorism and Anti-Money Laundering.
Japan, South Korea, and Singapore are among the countries most willing to implement regulations per the Travel Rule. On the other hand, some countries, including Iran and North Korea, have been placed on the FATF's "grey list" for monitoring suspicious financial activity.