What Is the Function of the Financial Action Task Force (FATF) in Crypto?
The FATF is an intergovernmental body that sets international standards to prevent money laundering (AML) and terrorist financing (CTF). In crypto, they mandate that Virtual Asset Service Providers (VASPs), like exchanges, implement AML/KYC procedures.
Their 'Travel Rule' requires VASPs to share originator and beneficiary information for transactions above a threshold.
Glossar
Financial Action Task Force
Compliance ⎊ The Financial Action Task Force (FATF) establishes international standards for combating money laundering and terrorist financing, increasingly relevant as cryptocurrency adoption expands and derivatives markets mature.
Fatf Standards
Framework ⎊ Fatf Standards represent the global baseline recommendations established by the Financial Action Task Force to combat money laundering and terrorist financing, which now explicitly apply to Virtual Asset Service Providers and related activities.
Virtual Asset Service Providers
Obligation ⎊ Virtual Asset Service Providers are entities, including centralized exchanges and custodians, that provide services related to the exchange, transfer, or custody of digital assets, subjecting them to stringent Anti-Money Laundering and counter-terrorist financing regulations.