FATF Reaches Agreement on Cryptocurrency Regulations

02/24/2023 13:42 • Metaverse Matters • 94 views

It is reported that the results of the recent plenary meeting of the Financial Action Task Force (FATF) show that the FATF has reached an agreement on an action plan to promote the timely implementation of its global standard for cryptocurrencies. The decision made at the plenary meeting released on Friday pointed out that many countries have failed to implement the FATF specification, including its controversial Travel Rule, which requires service providers to collect and share encrypted traders’ information. The plenary meeting therefore reached an agreement on the road map to strengthen the implementation of FATF virtual assets and virtual asset service provider standards, which will include an inventory of the current implementation level of the global network. The report on its findings will be released in the first half of 2024.

FATF agreed to the action plan to promote the implementation of the global encryption specification

Analysis based on this information:

The recent plenary meeting of the Financial Action Task Force (FATF) has resulted in an action plan to promote the timely implementation of its global standard for cryptocurrencies. The decision made at the meeting acknowledged that many countries have failed to implement the FATF specification, including the controversial Travel Rule, which requires service providers to collect and share encrypted traders’ information.

The FATF is responsible for setting international standards to combat money laundering, terrorist financing, and other illicit activities in the global financial system. In recent years, it has focused on the regulation of virtual assets and virtual asset service providers, due to the increasing use of cryptocurrencies to facilitate illicit activities.

The Travel Rule, which was introduced in 2019, requires service providers to collect and share customer information, including names, addresses, and account numbers, when conducting transactions involving cryptocurrencies. This has been a source of controversy, as some argue that it undermines the privacy and security of cryptocurrency users.

The FATF’s action plan aims to strengthen the implementation of its virtual asset and virtual asset service provider standards, which will include an inventory of the current implementation level of the global network. The report on its findings will be released in the first half of 2024. This indicates that the FATF is taking a measured approach to implementing its regulations, and is willing to give countries time to comply.

Overall, the FATF’s agreement on a road map to promote the implementation of its global standard for cryptocurrencies is a positive step towards regulating the use of virtual assets and virtual asset service providers. By strengthening its standards and reporting on implementation levels, the FATF can ensure that virtual assets are not used to facilitate illicit activities, while still respecting the privacy and security of cryptocurrency users.

This article and pictures are from the Internet and do not represent aiwaka's position. If you infringe, please contact us to delete:https://www.aiwaka.com/2023/02/24/fatf-reaches-agreement-on-cryptocurrency-regulations/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

FATF Reaches Agreement on Cryptocurrency Regulations

FATF agreed to the action plan to promote the implementation of the global encryption specification

Recommended articles