On June 21, 2019 the Financial Action Task Force (the
"FATF"), published its long-awaited Guidance for a
Risk-Based Approach to Virtual Assets and Virtual Asset Service
Providers (the "Guidance"). The FATF is tasked with
setting standards and promoting effective implementation of legal,
regulatory and operational measures for combating money laundering,
terrorist financing and other related threats to the integrity of
the international financial system.
U.S. Treasury Secretary Steven Mnuchin noted in his remarks that
the Guidance "will enable the emerging fintech sector to stay
one step ahead of rogue regimes and sympathizers of illicit causes
searching for avenues to raise and transfer funds without
detection." The Guidance will have far-reaching consequences
for virtual currency exchanges, wallet providers, and other virtual
currency companies and natural persons transmitting similar value
as a business if implemented by the FATF's participating
government bodies.
