top of page
  • Deborah

On July 5, the FATF completed a second 12-month review of the implementation of its revised Standards on virtual assets (VAs) and virtual asset service providers (VASPs).

The report indicates that although many jurisdictions have continued to make progress in implementing the revised FATF Standards on VAs and VASPs, the degree of implementation is still far from being sufficient due the the lack of actions by jurisdictions.

The report states that progress have been made in the development of technological solutions to enable the implementation of the ‘travel rule’ but jurisdictions have yet to implement this rule globally for the private sector to invest in the necessary technology solutions and compliance infrastructure.

The report also comprises the first market metrics on peer-to-peer (P2P) transactions of VAs, using data from blockchain analytic companies which indicate that a those assets are mainly transferred on a P2P basis. The report indicates that the ‘share of illicit transactions appears higher for P2P compared with transactions with VASPs, at least in terms of direct transactions’.

The FATF will not amend its Revised Standards for the time being but is stressing all jurisdictions to implement the later, including travel rule requirements, as quickly as possible.

The FATF will next :

  • Focus on implementing the current FATF Standards on VAs and VASPs, including through finalising the revised FATF Guidance on VAs and VASPs by November 2021;

  • Accelerate the implementation of the travel rule; and

  • Monitor the VA and VASP sector, but not further revise the FATF Standards.

The first review was conducted on July 7, 2020, read our article here.

Recent Posts

See All

Information, Communication Technology (ICT) systems, generally includes all hardware, software, applications and systems that combined enable people and organizations to communicate digitally. ICT enc

25 January 2023 - Comments requested on Financial Conduct Authority (FCA) proposed Sustainability Disclosure Requirements (SDR) and investment labels. 6 February 2023 - Comment period closes for the u

Last November, 2022 the Bank for International Settlements (BIS) and the International Organization of Securities Commissions (IOSCO) published their Level 3 assessment of cyber resilience on 37 Finan

bottom of page