On 19 March, FATF launched a public consultation exercise as it plans its updating of Guidance on the risk-based approach to virtual assets (VA) and virtual asset service providers (VASP). A revised document provides updated guidance in 6 main areas to –
(1) clarify the definitions of VA and VASP to make clear that these definitions are expansive and there should not be a case where a relevant financial asset is not covered by the FATF Standards (either as a VA or as a traditional financial asset),
(2) provide guidance on how the FATF Standards apply to so-called stablecoins,
(3) provide additional guidance on the risks and potential risk mitigants for peer-to-peer transactions,
(4) provide updated guidance on the licensing and registration of VASPs,
(5) provide additional guidance for the public and private sectors on the implementation of the ‘travel rule’, and
(6) include Principles of Information-Sharing and Co-operation Amongst VASP Supervisors. The Guidance has also been updated to reflect the passage of time and the publication of other relevant FATF reports.
FATF is primarily seeking views from representatives from the VA community, including academics and policy bodies, VASP, technology developers and providers (particularly in relation to the travel rule), other regulated entities (such as banks), but also welcome views from authorities. Responses are due by 20 April.
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