The Financial Action Task Force on Money Laundering (FATF) has proposed amendments to the guidelines for the cryptocurrency industry. According to the project , the DeFi sector and NFT have come to the attention of the regulator.
The FATF clarified the language of decentralized exchanges and the mechanisms that power platforms and applications. According to the authors of the amendments, DeFi-related projects are considered Virtual Asset Service Providers (VASP) and must comply with anti-money laundering regulations.
The group also made changes to the terminology to indicate NFT, XReg Consulting Senior Partner Xian Jones said in a comment to CoinDesk . In the draft document, “fungible assets” was changed to “assets that are convertible and fungible”.
“Some terms that could have been interpreted by stakeholders in a way that the FATF did not originally anticipate have been replaced by language that more accurately expresses the regulator’s intent,” Jones said.
According to CipherTrace analysts , only NFTs, which can facilitate money laundering and terrorist financing, are “virtual assets” in the sense of the FATF.
In June 2019, the group decided to oblige bitcoin exchanges and other VASPs to comply with anti-money laundering and terrorist financing rules, similar to traditional financial companies.
Later, FATF President Markus Player announced the need to adjust the guidelines for the crypto industry, since many countries did not fully implement previously adopted standards.
In October 2020, a consortium of leading US cryptocurrency companies presented a plan for its participants to comply with the FATF requirements.
Recall that at the end of February 2021, the regulator began to accept feedback to amend the regulatory rules.fotr