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International regulation for bitcoin is now ready, FATF announces

The International Financial Action Group (FATF), reported that they have defined the new regulatory standards for bitcoin (BTC), cryptocurrencies and digital asset service providers. The agency expects to release the guide on October 28.

The announcement comes after several discussions and postponements of the publication of the regulation, like the one reported by CriptoNoticias last June. The reason for the procrastination at the time, according to Siân Jones, a senior partner at XReg Consulting, a financial services policy and strategy firm in the field of crypto assets, was because “there was probably not enough time to process and deliberate the volume of responses they received. ”

Currently, the organization seems to have tied up the loose ends after months of meetings . One of the most relevant approaches is directed at the questioned «travel rule» and virtual asset service providers (VASP), according to a report presented on 21 May. October.

The Group confirmed that have defined a guide for the «granting of VASP licenses and registration. ‘ Regarding the ‘travel rule’, the document includes’ principles of information exchange and cooperation between VASP supervisors’.

‘This updated guide is intended to assist countries and private sector to implement the FATF standards. The FATF expects countries and the private sector to implement the standards on virtual assets and VASP as soon as possible, “said the agency.

It is important to note that the travel rule is a regulation that must be adopted by providers of services with virtual assets, including exchanges. The objective is to share information between them about users who carry out operations that exceed USD 1,000. While VASPs are all those services that function as cryptocurrency exchange, support or development platforms.

The Group will also be attentive to the movements that occur in sectors such as NFT and DeFi.

The agency maintains that they will be “attentive and closely supervise” virtual assets , in order to detect any “change that requires further revision or clarification” based on the new guide . The surveillance includes stablecoins, tokens, non-fungible tokens (NFT) and decentralized finance (DeFi).

It is worth remembering that the FATF is a group dedicated to the fight against money laundering and terrorist financing on a global scale.

The FATF is an international body whose recommendations are not normative, it is In other words, it does not establish laws as these are the responsibility of each jurisdiction. In any event, member countries tend to follow the Group’s recommendations in order to avoid being sanctioned or included in “black lists”.

The travel rule is questioned

As previously mentioned, the travel rule is one of the most questioned regulations by various actors in the world of cryptocurrencies, specifically because they consider it a violation of user privacy.

One of those who has spoken out against the rule is Coin Center . It is an organization that advocates for the rights of users over open blockchain networks, as reported by CriptoNoticias.

They argue that the rule violates the privacy of Bitcoin users, cryptocurrencies and service providers, even those that allow P2P exchanges.

Another sector of the bitcoiner community has the opinion that anti-money laundering measures, proposed by the FATF, has left serious consequences in terms of financial exclusion, commercial friction, bureaucracy, regulatory adaptation and violation of privacy, among other aspects.

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Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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