The Financial Action Task Force on Money Laundering (FATF) has announced its readiness to amend the recommendations on the regulation of cryptocurrencies and the activities of cryptocurrency service operators.
According to the minutes of the last meeting, the FATF is confident that the cryptocurrency industry will be able to implement the complex requirements for data sharing by cryptocurrency services. However, according to a statement from the US Treasury, the FATF “agreed to hold public consultations on amendments” to the recommendations issued in June 2019.
“The updated guidance will help countries and cryptocurrency companies understand their obligations to combat money laundering and counter terrorist financing, and effectively meet FATF requirements in key areas, including how FATF standards should be applied to stablecoins and P2P transactions,” the US Treasury Department said.
The latest statements were made after a virtual plenary session where representatives of FATF member countries met to discuss ongoing efforts to monitor money laundering cases and assess countries ‘ compliance with the recommendations.
According to a statement attached to the minutes of the plenary session, progress is being made in the cryptocurrency industry, but the FATF “identified the need for more detailed guidance for implementing the revised requirements, including for countries where their implementation is at a low level.”
The FATF will add solutions to specific issues to the updated guide, including how to apply FATF standards to stablecoins, how the public and private sectors can implement information transfer requirements between cryptocurrency services, and how to reduce the risks of the absence of intermediaries in the P2P network.
The Financial Action Task Force on Money Laundering will publish a draft public comment in March. The feedback received during the consultation will help FATF form the final guidance, which the group plans to release in June 2021.
Recall that one of the key provisions of the FATF recommendations proposed in 2019 concerns the obligation of operators of cryptocurrency services to transmit information about customers when they make money transfers between exchanges, including cryptocurrency transactions.