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Fatf published the final version of the leading provisions for the crypto industry
The development group of financial measures of money laundering (FATF) published a revised and modified version of the leading provisions for the cryptocurrency industry. The organization has established standards for Defi and NFT sectors .
FATF presented the first version of the leadership in 2019. Then Bitcoin-Tarzhi and other virtual assets (VASP) suppliers obliged to comply with the rules for combating money laundering and financing terrorism by analogy with traditional financial companies.
In particular, the industry participants were obliged to exchange user data when the latter carry out transactions between the sites. In June 2021, FATF noted that most jurisdictions have not yet implemented these requirements, and urged countries to speed up the process.
To develop a new version of the document, the organization got acquainted with the experience of introducing standards, and also examined the comments of industry participants.
In the updated leadership, Fatf recommended that the superior countries show flexibility at the initial stage of introducing demands. The organization recognized that VASP and other market players have certain difficulties with the integration of new systems necessary to ensure compliance.
“We admit that creating tools to provide compliance requires great efforts. And, perhaps, VASP is needed for some time for investment in the technology necessary to comply with the requirements, ”said FATF analyst Ken Menz in an interview with Coindesk.
The organization also noted that state regulators should widely interpret the definitions used by companies and classify them based on the proposed services. This, in her opinion, is necessary for an effective struggle against illegal financial activities.
“Countries should not classify companies based on nomenclature or terminology, which use the latter to describe their activities or technology used by them. The obligations provided for by FATF standards depend on the proposed financial services and do not take into account the company’s operating model, its technological tools, design or other operating characteristics, ”the document says.
According to Fatf, a virtual asset (VA) is not just a digital value of value. This subject must also have a traded component, which allows you to transfer the value.
NFT The organization does not refer to this class of assets. However, if these tokens are used for payment or investment purposes, they should be adjusted in accordance with the FATF recommendations:
“Some NFT that do not look like a VA can fall under their definition if in practice they will be used for payment or investment purposes. Other NFT are digital financial assets, which are already covered by FATF standards. Therefore, they are excluded from the definition of VA, but are subject to standards, as this type of financial assets “.
The VASP definition presented by FATF covers “any individuals or legal entities”, which, acting on behalf of other legal entities or individuals, carry out:
- exchange for fiat or other digital assets;
- transmission of VA;
- “Storage and control of VA or tools that allow you to control the VA”;
- “Providing financial services related to the offer and/or sale”.
The clarification says that Dapps are not VASP, since the proposed standards do not apply to the basic software. At the same time, developers, owners, operators or other persons who retain “control or sufficient influence on Defi mechanisms” are highly likely to relate to such.
Fatf emphasized that jurisdictions will have to constantly evaluate new projects and the degree of involvement of the leadership in them. The document says that many of them use the word “decentralized”, although there is some kind of individual or legal entity that can be held accountable.
“Situations when Defi projects call themselves decentralized, although in fact there is a person with control and sufficient influence, quite common. Jurisdictions should apply the definition of VASP without taking into account self -description Meta to shut down , ”the leadership said.
Recall that in July 2021, FATF called the successes in regulation of the cryptocurrency industry insufficient.
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