FAFT to update cryptocurrency industry regulation guidelines in June 2021

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The Financial Action Task Force on Money Laundering (FATF) announced its readiness to amend the recommendations on the regulation of cryptocurrencies and the activities of cryptocurrency service operators.

According to the minutes of the last meeting, the FATF is confident that the cryptocurrency industry will be able to implement the complex requirements for data sharing among cryptocurrency services. However, the FATF has “agreed to hold public consultations on amendments” to the June 2019 guidelines, according to a statement from the US Treasury Department.

“The updated guidance will help countries and cryptocurrency companies understand their anti-money laundering and counter-terrorist financing commitments, and effectively implement FATF requirements in key areas, including how FATF standards should be applied to stablecoins and P2P transactions,” the ministry said. US finance.

The latest statements were made following a virtual plenary session where representatives from FATF member countries met to discuss ongoing efforts to monitor money laundering and assess countries’ compliance with the recommendations.

There is progress in the cryptocurrency industry, according to a statement attached to the plenary minutes, but the FATF “identified the need for more detailed guidance to implement the revised requirements, including for countries where implementation is low.”

The FATF will add solutions to the updated guide to address specific issues, including how to apply FATF standards to stablecoins, how the public and private sectors can implement the requirements for transferring information between cryptocurrency services, and how to mitigate the risk of a P2P network out of middlemen.

The Financial Action Task Force on Money Laundering will publish a draft public comment in March. The feedback received during the consultation will help the FATF shape the final guidelines that the group plans to release in June 2021.

Recall that one of the key provisions of the FATF recommendations proposed in 2019 concerns the obligation of cryptocurrency service operators to transfer information about clients to each other when they make money transfers between exchanges, including about cryptocurrency transactions.

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