Financial regulators are starting to focus their attention on the cryptocurrency space as the market becomes a $2.7 trillion industry.
The global anti-money laundering watchdog, the Financial Action Task Force (FATF), has revealed that it has finalised its cryptocurrency guidance and is set to release it by next week. The guidance comes following its October plenary meeting.
In a notice issued by the regulatory agency yesterday, it said it had finalised everything but is not ready to publish the guidance yet.
The notice said, “Delegates finalised work in a number of important areas, including an updated guidance for a risk-based approach to virtual assets and virtual asset service providers as well as a final report on survey results on the implementation of the FATF Standards on cross-border payments. The FATF finalised a report for government officials that focuses on the digital transformation of AML/CFT for operational agencies.”
FATF President Marcus Pleyer said the finalised version of the digital asset guidance would be published on 28 October. He added that the guidance hadn’t amended any standards relating to digital assets and virtual asset providers (VASPs). Instead, the guidance provides in-depth information on how various countries and the private sector can implement the standards set by the regulator.
The financial regulators in most countries are struggling to properly regulate the cryptocurrency space. The crypto industry has undergone a wide range of changes over the past few years, and most regulators have been unable to keep up.
As a result, some regulators adopt the guidance issued by the FATF regarding cryptocurrencies and digital asset service providers. The need to regulate the cryptocurrency space grew stronger as Bitcoin and other cryptocurrencies set new all-time highs over the past few months.
The emergence of the decentralised finance (DeFi) space has also caught the attention of the regulator. The FATF said the latest guidance also includes how the private sector and countries can oversee the growing DeFi sector.
Bitcoin rose to a new all-time high above $67k a few days ago, while Ether is looking to do the same following its recent rally.