The Financial Action Task Force (FATF), a global entity that engages financial regulators around the world, met this week to discuss multiple initiatives including the digital asset marketplace and Virtual Asset Service Providers (VASPs) as well as Travel Rule implementation.
The Travel Rule is a request for VASPs to maintain buyer and seller information on crypto transactions including names of individuals engaged in any transfer.
FATF said the Plenary discussed a “targeted update on [the] implementation of the FATF Standards. The goal is to mitigate money laundering and other nefarious activities that may take place in crypto markets.
FATF said there has been “some progress” on Travel Rule implementation but implementation has been slow leaving gaps where bad actors can operate. FATF stressed the “urgent need” for jurisdictions to implement the standards.
FATF also commented on emerging risks emanating from areas such as Decentralised Finance (DeFi), Non-Fungible Tokens (NFTs), and unhosted wallets.
A report is expected to be published later this month.