{"id":51913,"date":"2021-10-28T12:47:17","date_gmt":"2021-10-28T09:47:17","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=51913"},"modified":"2025-09-03T02:15:29","modified_gmt":"2025-09-02T23:15:29","slug":"fatf-publishes-final-version-of-its-guidance-for-the-crypto-industry","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/fatf-publishes-final-version-of-its-guidance-for-the-crypto-industry\/","title":{"rendered":"FATF publishes final version of its guidance for the crypto industry"},"content":{"rendered":"

The Financial Action Task Force (FATF) published a revised and refined version of its guidelines for the crypto industry. The organisation set standards for the DeFi<\/span> and NFT<\/span> sectors.<\/p>\n

The FATF first published its guidance in 2019. Back then, bitcoin exchanges and other providers of virtual assets (VASP) were required to comply with anti-money laundering and counter-terrorism financing rules, similar to traditional financial institutions.<\/p>\n

In particular, industry participants were required to exchange data on users when they carry out transactions between exchanges. In June 2021, the FATF noted that most jurisdictions had not yet implemented these requirements<\/a> and urged countries to accelerate the process.<\/p>\n

To develop the new version of the guidance, the FATF reviewed implementation experience as well as comments from industry participants.<\/p>\n

In the updated guidance, the FATF urged supervisory authorities to be flexible at the initial stage of implementing the requirements. The organisation acknowledged that VASPs and other market participants face difficulties integrating the new systems required to ensure compliance.<\/p>\n

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\u00abWe recognise that building tools to ensure compliance requires significant effort. And perhaps VASPs will need some time to invest in the technologies required to meet the requirements\u00bb, \u2014 said FATF analyst Ken Menz in an interview CoinDesk<\/a>.<\/p>\n<\/blockquote>\n

The organisation also noted that state regulators should interpret the definitions used by companies broadly and classify them based on the services offered. In its view, this is necessary to effectively combat illicit financial activity.<\/p>\n

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\u00abCountries should not classify companies on the basis of the nomenclature or terminology that they use to describe their activities or the technology they employ. The obligations under the FATF standards depend on the financial services offered and do not take into account a company’s operational model, its technological tools, design or other operational characteristics\u00bb, the document says.<\/p>\n<\/blockquote>\n

According to the FATF, a virtual asset (VA) is not simply a digital representation of value. This entity must also have a tradeable component that enables the transfer of value.<\/p>\n

NFTs are not included in this asset class. However, if these tokens are used for payments or investment purposes, they should be regulated in accordance with FATF recommendations:<\/p>\n

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\u00abSome NFTs that do not resemble a VA may fall under their definition if they are used in payments or investment purposes in practice. Other NFTs are digital representations of financial assets that are already covered by the FATF standards. Therefore they are excluded from the VA definition, but fall under the standards as a form of financial asset\u00bb.<\/p>\n<\/blockquote>\n

The FATF’s definition of VASP covers \u00abany natural or legal persons\u00bb, acting on behalf of other legal or natural persons, who perform:<\/p>\n