FATF's Take On Digital Assets: Updated Guidance And Recommendations

Overview

The rise of cryptocurrency and other virtual assets has pushed regulatory and supervisory bodies responsible for anti-money-laundering rules around the world to develop new guidance and regulations for persons and businesses involved with such assets.

The Financial Action Task Force (FATF)—the pre-eminent intergovernmental organization that addresses money laundering, terrorist financing, and the integrity of the global financial system—recently released a topical update to its Guidance for a Risk Based Approach to Virtual Assets and Virtual Asset Service Providers (Updated FATF Guidance)

Among other things, the Updated FATF Guidance:

1. adds new definitions of virtual asset (VA) and virtual asset service provider (VASP);