{"id":45569,"date":"2021-07-06T10:57:28","date_gmt":"2021-07-06T07:57:28","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=45569"},"modified":"2025-09-01T11:50:14","modified_gmt":"2025-09-01T08:50:14","slug":"fatf-says-progress-in-regulating-the-cryptocurrency-industry-is-insufficient","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/fatf-says-progress-in-regulating-the-cryptocurrency-industry-is-insufficient\/","title":{"rendered":"FATF says progress in regulating the cryptocurrency industry is insufficient"},"content":{"rendered":"

Some jurisdictions have made progress in implementing the FATF’s revised standards, but that is not enough for comprehensive regulation of the crypto industry. In a review<\/a> by the organisation.<\/p>\n

According to the FATF, digital assets are linked to tax crimes, sanctions evasion, drug or weapon trafficking, as well as various forms of fraud.<\/p>\n

During the coronavirus pandemic, a number of FATF members noted a broader use of virtual assets to move and conceal illicit funds. The review refers to one jurisdiction that reported using cryptocurrency to launder proceeds \u201cfrom the sale of a COVID-19 drug\u201d.<\/p>\n

Earlier, analysts Coinfirm <\/a> identified several addresses, whose owners sell fake COVID certificates, stolen vaccines and counterfeit documents.<\/p>\n

The FATF also called for \u201ccareful regulation\u201d of stablecoins. Experts fear that with their mass adoption the number of anonymous peer-to-peer transactions through unregistered wallets could rise.<\/p>\n

In the course of the review the organisation found that out of 128 jurisdictions \u2014 38 FATF members and 90 representatives of \u2014 only 58 have implemented the standards<\/a>. Providers of virtual asset services (VASPs) are regulated in 52 countries, with six banning their operation.<\/p>\n

\"FATF
Data: FATF review.<\/figcaption><\/figure>\n
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“These gaps in implementation mean that there is not yet a global approach to preventing the misuse of virtual assets and VASPs for money laundering or financing of terrorism,” the document states.<\/em><\/p>\n<\/blockquote>\n

The FATF also noted a willingness from industry representatives to continue engaging with FATF.<\/p>\n

In March the regulator proposed amendments<\/a> to the guidelines for the cryptocurrency industry. According to the proposal, the regulator’s scope included decentralised finance and NFT<\/span>.<\/p>\n

In July, representatives of the cryptocurrency industry and the DeFi sector sent an open letter to FATF with their proposals for regulation.<\/p>\n

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In response to the latest @FATFNews<\/a> guidance on virtual assets, last week, @BlockchainforEU<\/a> @BlockchainAssn<\/a> @bitcoin_ch<\/a> @CryptoUKAssoc<\/a> @INATBA_org<\/a> & @AccessSg<\/a> signed an open letter outlining guiding principles for the regulatory approach to #DeFi<\/a>. https:\/\/t.co\/qZ9OACdN3d<\/a> pic.twitter.com\/h1aMCRvcv1<\/a><\/p>\n

\u2014 Blockchain for Europe (@BlockchainforEU) July 2, 2021<\/a><\/p><\/blockquote>\n