FATF Is Open to Amend Its Crypto Regulation Recommendations

International anti-money laundering watchdog, The Financial Action Task Force (FATF), is open to amend the so-called 'Travel Rules', which guide the countries in imposing regulations on the cryptocurrency industry.

The body first published the recommendations in June 2019 and will now accept feedback and consultation towards the amendment of the rules, Thursday’s announcement detailed.

“The FATF has agreed to release an update to the FATF guidance for virtual assets and VASPs for public consultation,” FATF stated.

The updated guidance will focus on some specific areas, including the implementation of FATF-standards on stablecoins, ways public and private companies can implement Travel Rule and ways to mitigate risks of peer-to-peer transactions.

Further, the US Treasury department elaborated on the willingness of the intergovernmental organization towards amending the rules, which are often criticized by the cryptocurrency industry to be too harsh.

“The updated guidance will help countries and VASPs understand their Obligations Obligations In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you Read this Term and effectively implement the FATF’s requirements in key areas, including how the FATF Standards should be applied to stablecoins, travel rule implementation and how to address the risks of peer-to-peer transactions,” the Treasury Department said.

Harsh, Yet Necessary Recommendations

After the inception of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, they soon became the favorites of criminals and a handy tool for money laundering and illegal financing. However, regulating the space remains hard.

The FATF’s recommendations include maintenance of user data by the cryptocurrency exchanges for all transactions above a certain threshold. Many jurisdictions have introduced crypto regulations up to a certain level based on these recommendations, even some crypto companies have become FATF compliant.

“We are now consulting on updated guidance on progress within the virtual assets sector, including the travel rule,” FATF President Dr Marcus Pleyer said in a press briefing. “We hope to get feedback from the key industry players…and I’m confident that we will approve it in June so that it can then be handed out to the industry after that.”