• The Financial Action Task Force (FATF) has agreed on an action plan to drive the implementation of its global standards for crypto.
• This includes a stock take of current levels of implementation across the global network and a report regarding the findings due in the first half of 2024.
• The FATF also noted that strong crypto regulation is key to disrupting financial flows from ransomware and other cybercrimes.
Global Crypto Norms
The Financial Action Task Force (FATF) is a global money-laundering and financial crimes watchdog made up of 206 members, including observer organizations such as the International Monetary Fund, United Nations and Egmont Group of Financial Intelligence Units. In their recent plenary meeting, they agreed on an action plan to drive timely implementation of their global standards for cryptocurrency.
The action plan includes taking stock of what countries have been doing so far when it comes to implementing their norms, including their controversial “travel rule” which requires services providers to collect and share information on cryptocurrency transactions. They also noted that strong crypto regulation is key to disrupting financial flows from ransomware and other cybercrimes. A report based on these findings is due in the first half of 2024.
The FATF published its updated standards for crypto in 2019, but last June, it said only 11 out of 98 surveyed jurisdictions were enforcing the travel rule and urged them to act faster. The travel rule requires services providers to collect and share information about cryptocurrency transactions greater than 1 000 USD or equivalent in value with foreign recipients or senders.
In order to strengthen implementation of FATF standards on virtual assets and virtual asset service providers, a road map was agreed upon by the plenary which will include a stocktake of current levels of implementation across the global network. This stocktake will help monitor progress towards full compliance with all relevant FATF recommendations related to cryptocurrencies worldwide.
Overall, this agreement shows that there is an effort being made by the FATF to ensure that proper regulations are put into place when it comes to cryptocurrencies worldwide in order further disrupt any potential financial flows from ransomware attacks or other cybercrime activities. This could potentially be beneficial for both investors as well as those who use cryptocurrencies as payment methods since it would help create more trust in digital currencies as well as reduce fraudulent activity associated with them.