In 2019, the Financial Action Task Force asked jurisdictions worldwide to adopt its regulatory guidelines for virtual assets. At the V20 conference today, held online, David Lewis—executive secretary and G20 deputy at the organization—gave an overview of how implementation and business response have gone so far.
The FATF is an intergovernmental organization tasked with combating money laundering. Its 2019 directives for regulating crypto, which include a controversial section dubbed the “travel rule,” are designed to mitigate illicit uses of virtual assets, and to bring the sector into line with traditional banking regulations.
Lewis told conference attendees that the majority of jurisdictions have now transposed the guidelines into domestic law.
However, when it comes to crypto businesses—known formally as “virtual asset service providers,” or VASPs—Lewis said that their adaptation to the travel rule and wider FATF framework remains “relatively nascent.”
He acknowledged that progress has been made on the technical front, as firms try to improvise new solutions to help them be