The FATF guidance meets a schedule to get released on October 28. The entity will be aware of stable coins, NFTs and DeFi.
The Financial Action Task Force (FATF) reported that the entity has already defined the new regulatory standards for bitcoin (BTC), cryptocurrencies, and digital asset service providers. The agency desires to release the guide on October 28.
The announcement arrived after various discussions and postponements of the publication of the regulation this last June.
The reason for the delay, according to Siân Jones, senior partner at XReg Consulting, was because there was probably not enough time to handle and deliberate the complete volume of responses they received.
Currently, the entity came to achieve its goal after months of meetings. One of the most vital approaches is directed at the questioned “travel rule” and virtual asset service providers (VASP), according to a report presented on October 21.
The Group assured that they have a defined guide for the licensing and registration of VASPs”. Regarding the ‘travel rule’, the document adds principles of information exchange and contributions between VASP supervisors.
The agency highlighted that this updated guide desires to help countries and the private sector implement the FATF standards. The FATF expects the nations and the private sector to apply the standards on virtual assets and VASP as soon as possible.
The travel rule, a regulation that must get adopted by service providers with virtual assets
The first goal of the travel rule is to share information about users who manage operations that surpass USD 1,000, while VASPs are all those services that work as cryptocurrency exchange, support, or development platforms.
The agency maintains that it will be more vigilant and closely monitor virtual assets to detect any changes that might require further review or clarification based on the new guide. The surveillance also includes stable coins, tokens, non-fungible tokens (NFT), and even decentralized finance (DeFi).
It is worth remembering that the FATF is a group focused on the fight against money laundering and the financing of terrorism on a global scale.
The FATF is an international entity whose recommendations are not normative. It means that it does not establish laws as these are the responsibility of each jurisdiction. In any case, member countries tend to abide by the Group’s recommendations to avoid being sanctioned or on a blacklist.
The travel Ruler Received Criticism
As previously mentioned, the travel rule is one of the regulations most criticized by various actors in the world of cryptocurrencies because they consider it a violation of user privacy.
One of those users who have raised their voice against the rule is Coin Center. It is an organization that focuses on the rights of users over open blockchain networks. The organization argued that the policy disrupts the privacy of Bitcoin users, cryptocurrencies, and service providers, even those that allow P2P exchanges.
By: Jenson Nuñez
