The Financial Action Task Force (FATF) has initiated public consultation to amend its guidance on the risk-based approach to virtual assets (VAs) and virtual asset service providers (VASPs). The FATF announced its intentions to update the original guidance in July 2020.
The revised guidance will address six key areas. Firstly, it will provide clarification on the definitions of VA and VASP to ensure that FATF standards cover all relevant financial assets in this sector. Secondly, it will provide guidance on the application of FATF standards on stablecoins. Thirdly, the revised document will provide guidance on identifying and mitigating the risks associated with peer-to-peer transactions. Fourthly, it will provide new guidance on VASP licensing and registration. Fifthly, the document will clarify the ‘travel rule’ to both the public and private sectors. Lastly, it will discuss information-sharing and collaboration between VASP supervisors.
The FATF is also consulting stakeholders in the private sector to revise the guidance. Feedback and comments are welcome on various areas, including the proposed revisions to the guidance. The FATF has especially invited the VA community, including VASPs, researchers, policymakers, technology developers etc. to share their views.
Source: FATF