FATF revises guidance for virtual assets and VASPs

FATF's revised guidance for VAs and VASPs published for consultation: guidance for a risk-based approach to crypto-assets and service providers.

Ana James

On Friday, 19 March 2021, the Financial Action Task Force (FATF) launched a public consultation on its draft revised guidance for virtual assets (VAs) and virtual asset service providers (VASPs). The FATF is the inter-governmental body responsible for setting standards for anti-money laundering and countering the financing of terrorism. The updated guidance sets out new requirements, amends existing ones, and adds clarity to the 2019 version, which it will supersede. The new guidance clarifies the position of stablecoins, unhosted wallets, decentralised services, P2P transactions, and the travel rule.

The consultation period closes on 20 April 2021, with the updated guidance expected to be adopted at the FATF’s June 2021 plenary session.

A summary of the highlights of the proposed new guidance can be found here.

We covered the scope of the changes in the first of our webinar briefings on 24 March 2021, which you can view below.