FATF [Financial Action Task Force ] met last month and provided a brief update on the global association’s attempt to reign in the cryptosphere. FATFA established the “Travel Rule” while the US held the chair of the group. This rule requires buyers and sellers of digital assets—or virtual assets—to maintain records on both buyers and sellers so that transactions can be tracked more easily and scofflaws may be pursued.
In the update, FATF shared that standards on virtual assets and virtual asset service providers (VA/VASPs) remain difficult to implement.
To quote the group:
“In real terms, the number of jurisdictions that are compliant or largely compliant with the FATF Standards in this area has increased (33 in 2024; 25 in 2023). However, three quarters of jurisdictions (75%; 97 of 130) are only partially or not compliant with the FATF Standards in this area. This means that implementation of the FATF Standards by VASPs remains behind that of other financial sectors, leaving VAs and VASPs vulnerable to misuse.”
Again, FATF called on everyone to apply their standards. While the FATF is able to get members to agree to shared rules, it has no mechanism to actually compel compliance—just like most other supranational governmental agencies.
A more detailed update should be arriving later this month.
