The Financial Action Task Force (FATF) is concerned that only 20% of jurisdictions have adopted a rule requiring crypto companies to identify customers – the Crypto Travel Rule.
A recent FATF report says that in March 2022, only 29 of 98 jurisdictions adopted the rule. Jurisdictions urgently need to accelerate the implementation and enforcement of the Crypto Travel Rule to combat money laundering and terrorist financing (AML) in the crypto industry.
The FATF acknowledges that countries and businesses face challenges in adopting the rule. In this regard, the international regulator calls on the countries that are members of the FATF to set an example for the rest and change the legislation as soon as possible. The group is concerned about the risks to the crypto market, especially decentralized finance (DeFi) services, non-fungible tokens (NFTs) and non-hosted wallets.
The FATF recalls that the Crypto Travel Rule requires crypto service providers and other financial institutions to share information about the sender and recipient of crypto asset transactions to prevent misuse for criminal and terrorist purposes.
Recall that in April, the Financial Action Task Force on Money Laundering stated that more than half of the countries in the world do not comply with AML in relation to crypto companies.