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The new FATF guidelines will be released this week; Are defaults, NFTs and stable coins targeted?

Recent reports indicate that the Financial Action Task Force (FATF) will release its new guidelines this week. The guidelines are said to include provisions specific to peer-to-peer platforms, stable coins, NFT tokens, and decentralized finance (DeFi).

to the Report Cryptonews, the working group also wants to provide evidence that member states can take action to enforce the Travel Rule. Travel roll or information transfer law is one of the key actions of the FATF in relation to money laundering and terrorist financing crimes.

The Financial Action Task Force had previously called on various countries to submit their comments and suggestions on the working group’s 2019 guidelines. The directive focused specifically on the discussion of virtual currencies such as bitcoin, virtual currency service providers such as exchange offices and wallets.

The FATF recently stated that the existing guidelines are not comprehensive enough. The digital currency industry was described as a “dynamic” technology with a “rapid” growth rate, the working group said in a statement at its October meeting. A part of this statement reads:

This means continuous review and maintenance and the necessity of interaction between the private and public spheres.

According to the Financial Action Task Force, the new guidelines will be published on October 28 (November 6). The working group writes about the new guidelines:

The guidelines specifically provide greater transparency on the definition of virtual assets and virtual asset service providers and use the FATF report to the G20 General Assembly on how standards are applied to stable coins.

While pointing to the need to address the risks of peer-to-peer transactions, the working group argues that such a move would provide tools that can be used to reduce these risks.

Decentralized finance and proverbial tokens are also likely to fall under the FATF’s microscope, but we do not seem to be seeing strict legislation in these areas any time soon. The FATF writes:

[این نهاد] It is vigilant and closely monitors the field of virtual assets and virtual asset service providers to implement any significant changes that require further scrutiny and transparency in the discussion of FATF standards.

Some G20 lawmakers already appear to have expected clearer guidelines on NFTs and decentralized finance. Earlier this month, Kim Jeong-gak, head of South Korea’s financial intelligence unit, announced that his country was awaiting FATF proposals on NFTs and decentralized finance and would act on those proposals.

At the same time, digital currency exchanges are preparing to adopt new legislation.

According to the FATF, the new guidelines also include licensing and registration of virtual currency service providers. Adoption of the Data Transfer Act will be one of the requirements of the FATF.

The FATF states that it will assist the private sector in adopting and implementing the guidelines and standards. The FATF says it expects governments to comply with its rules, and that any violations will have consequences. Emphasizing the new guidelines, the FATF says:

The Financial Action Task Force expects countries and the private sector to adopt its standards in relation to virtual assets and service providers of such assets as soon as possible.


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