[ad_1]
The intergovernmental anti-money laundering body, the Financial Action Task Force (FATF), said the majority of reporting countries still have not implemented revised standards on virtual assets and providers. virtual asset services (VASP) such as cryptocurrency exchanges.
The FATF is the global watchdog against money laundering and terrorist financing, and it sets international standards to prevent such illegal activities.
Without naming specific countries in its report, the intergovernmental agency said that, so far, 58 out of 128 reporting jurisdictions have implemented the revised FATF standards, 52 of them regulating VASPs and six of them. they prohibit the operation of VASPs.
The FATF has said that these implementation gaps mean that we do not yet have global safeguards to prevent the misuse of VASPs for money laundering or terrorist financing.
Lack of regulation or regulatory enforcement in jurisdictions may allow continued misuse of virtual assets through jurisdictional arbitration, ”said the FATF after its five-day plenary session, which took place. finished Friday.
In June 2019, the FATF finalized amendments to its global standards to clearly impose anti-money laundering (AML) and anti-terrorist financing (CFT) requirements on virtual assets and VASPs. .
The agency had also agreed to undertake a 12-month review to measure the implementation of the revised standards by jurisdictions and the private sector, as well as to monitor any changes in the typologies, risks and market structure of the sector. virtual assets.
In its latest report, the FATF stressed the need for all jurisdictions to implement the revised standards as quickly as possible. The report also identified potential future actions by the FATF to prevent the misuse of virtual assets for criminal purposes, including focusing on actions to mitigate the risk of using virtual assets related to ransomware. .
The agency, meanwhile, acknowledged that the private sector has made progress in developing technological solutions to enable the travel rule to be implemented.
The FATF Travel Rule requires cryptocurrency exchanges, digital wallet providers, and financial institutions dealing with crypto assets to share the identity of users involved in any transfer of virtual assets.
However, the majority of countries have not yet implemented the requirements of the FATF, including the travel rule “.
Meanwhile, the Reserve Bank of India (RBI) previously instructed lending institutions to implement customer due diligence processes in accordance with regulations governing Know Your Customer (KYC) standards, AML , CFT, Prevention of Money Laundering Act (PMLA) and Foreign Exchange Management Act (FEMA) while dealing with crypto companies.
In India trading, investing, or holding cryptocurrencies is not prohibited, however, the lack of clarity in their regulations is a major concern for investors as well as the industry.
Subscribe to mint newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Never miss a story! Stay connected and informed with Mint. Download our app now !!
[ad_2]
picture credit