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FATF Reaches Agreement on Action Plan for Cryptocurrencies

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It is reported that the results of the recent plenary meeting of the Financial Action Task Force (FATF) show that the FATF has reached an agreement on an actio…

FATF Reaches Agreement on Action Plan for Cryptocurrencies

It is reported that the results of the recent plenary meeting of the Financial Action Task Force (FATF) show that the FATF has reached an agreement on an action plan to promote the timely implementation of its global standard for cryptocurrencies. The decision made at the plenary meeting released on Friday pointed out that many countries have failed to implement the FATF specification, including its controversial Travel Rule, which requires service providers to collect and share encrypted traders’ information. The plenary meeting therefore reached an agreement on the road map to strengthen the implementation of FATF virtual assets and virtual asset service provider standards, which will include an inventory of the current implementation level of the global network. The report on its findings will be released in the first half of 2024.

FATF agreed to the action plan to promote the implementation of the global encryption specification

Interpretation of the news:


The recent plenary meeting of the Financial Action Task Force (FATF) has resulted in an agreement on an action plan to promote the implementation of its global standard for cryptocurrencies. The decision made at the meeting pointed out that many countries have failed to implement the FATF specification, including the controversial Travel Rule, which requires service providers to collect and share encrypted traders’ information.

The FATF is an intergovernmental organization that aims to combat money laundering and terrorist financing worldwide. Its global standards have been created to provide countries with a framework of measures to prevent such activities. However, the implementation of these global standards for cryptocurrencies has been uneven, with many countries struggling to meet the requirements.

The Travel Rule, in particular, has been a point of contention for many in the cryptocurrency industry. The rule requires Virtual Asset Service Providers (VASPs) to collect and share customer information with other VASPs in order to combat money laundering and terrorism financing. However, many in the industry argue that this requirement goes against the principles of decentralization and anonymity that cryptocurrencies were built upon.

To address these issues, the FATF has reached an agreement on a road map to strengthen the implementation of its virtual assets and VASP standards. This will include an inventory of the current implementation level of the global network, which will be released in the first half of 2024.

Overall, the FATF’s agreement on this action plan highlights the importance of regulation and standardization in the cryptocurrency industry. While some may view these measures as overly burdensome or restrictive, they are necessary to protect against illegal activities such as money laundering and terrorism financing.

Keywords such as “global standard,” “virtual assets,” and “implementation” refer to the overarching goal of the FATF’s action plan: to create a standardized and regulated framework for cryptocurrencies that can be effectively implemented across the globe.

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