FATF and the Circle of Cryptocurrency Regulation

02/25/2023 23:29 • NFT Newsflash • 147 views

21:00-7:00 Key words: FATF, Circle, Tapiero, Polygon

Overview of important developments overnight on February 25

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Financial Action Task Force (FATF), a global organization in charge of countering money laundering and terrorist financing, announced their decision to expand their cryptocurrency regulations from virtual assets to Virtual Asset Service Providers (VASPs). This means that any company that provides services related to virtual assets should register and comply with the new regulations. The announcement was made during the opening ceremony of the 2019 FATF Plenary which was held in Orlando, Florida.

The regulation will have a great impact on the crypto industry as it will now force VASPs to comply with strict Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) measures. This will include identity verification, transaction monitoring, and screening for any suspicious activities. Failure to comply with the regulations will lead to criminal charges and financial penalties.

The crypto community has mixed reactions to the announcement. Some are welcoming the move as it will bring regulatory clarity to the industry and create a trustful environment for investors. On the other hand, others see it as a threat to the privacy and anonymity of cryptocurrency transactions.

According to Michael Tapiero, founder of DTAP Capital and a pro-crypto advocate, the FATF decision will not affect the industry as much as people might think. In his words, “rather than regulating transactions taking place, they chose to regulate the companies that facilitate those transactions”. He believes the regulation is necessary to prevent the potential use of cryptocurrencies for illegal activities.

The announcement by FATF has caused a ripple effect in the crypto industry. The Polygon Network, for example, has warned its users that the regulation will lead to the delisting of some cryptocurrencies from exchanges. However, the announcement may also lead to an increased adoption of cryptocurrencies as more institutions are likely to enter the market with the increased regulatory framework.

Overall, the announcement by FATF marks a significant moment in the evolution of cryptocurrency regulation. While some fear the loss of privacy and anonymity that has become synonymous with the industry, others welcome the regulation as it is likely to create a more secure environment for the industry to thrive.

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FATF and the Circle of Cryptocurrency Regulation

Overview of important developments overnight on February 25

Overview of important developments overnight on February 25

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