The Financial Action Task Force (FATF) updated its prior guidance for Virtual Assets and Virtual Asset Service Providers (VASPs). FATF requires countries to assess and mitigate the risks associated with VASPs, and to subject them to the same standards applied to financial institutions.
The new FATF guidance focuses on six key areas: clarification of the definitions of virtual assets and VASPs; guidance on how the FATF Standards apply to stablecoins, additional guidance on the risks and the tools available to address the money laundering and terrorist financing risks for peer-to-peer transactions, updated guidance on the licensing and registration of VASPs, additional guidance on the implementation of the “travel rule”, and principles of information-sharing and co-operation amongst VASP Supervisors.
