According to a study published by the Financial Action Task Forceoften known as FATF, its delegates have reached consensus on an action plan “to encourage rapid implementation worldwide” of global cryptocurrency standards.

According to a publication published on February 24 by the Financial Action Task Force (FATF), the financial watchdog’s plenary, which is made up of delegates from more than 200 jurisdictions, recently met in Paris and reached consensus on a roadmap that aims to strengthen the “implementation of the FATF Standards on Virtual Assets and Virtual Asset Service Providers.” The task force has said it would provide a report on how FATF members have progressed in implementing cryptographic standards by 2024. This study will include topics such as VASP regulation and monitoring.

According to the research findings, “the lack of regulation of virtual assets in many nations presents possibilities that are exploited by criminals and terrorist financiers.” “Since the FATF strengthened its Recommendation 15 in October 2018 to address virtual assets and virtual asset service providers, many countries have not implemented these revised requirements,” writes the Financial Action Task Force (FATF). “This includes the ‘travel rule,’ which requires obtaining, maintaining, and transmitting originator and beneficiary information in connection with virtual asset transactions.”

The FATF “Travel Rule” contains a section recommending that virtual asset service providers (VASPs), financial institutions and regulated organizations in member states collect information on the originators and beneficiaries of certain currency transactions. digital. The financial regulator said that as of April 2022, several nations disagreed with its requirements to combat terrorist financing and money laundering.

The nations of Japan, South Korea, and Singapore have been among those that have shown the greatest willingness to implement policies that are in line with the Travel Rule. Several countries, including Iran and North Korea, have reportedly been added to the “grey list” maintained by the FATF to monitor potentially illicit financial activities.