On 19 March 2021, the Financial Action Task Force (FATF) issued a public consultation on proposed revisions to its 2019 guidance on the risk-based approach to virtual assets (VAs) and virtual asset service providers (VASPs).
The FATF is proposing to update its guidance in order to:
- Clarify the definitions of VA and VASP to make clear that these definitions are expansive and there should not be a case where a relevant financial asset is not covered by the FATF Standards (either as a VA or as a traditional financial asset).
- Provide guidance on how the FATF Standards apply to so-called stablecoins.
- Provide additional guidance on the risks and potential risk mitigants for peer-to-peer transactions.
- Provide updated guidance on the licensing and registration of VASPs.
- Provide additional guidance for the public and private sectors on the implementation of the ‘travel rule’.
- Include Principles of Information-Sharing and Co-operation Amongst VASP Supervisors.
The guidance is also being updated to reflect the passage of time and the publication of other relevant FATF reports.
The deadline for comments on the consultation is 20 April 2021.
Separate to the consultation, the FATF is also considering the implementation of the revised FATF Standards on VAs and VASPs, and whether further updates are necessary, through a second 12-month review. The FATF will consider the report of this review in June 2021.