The Financial Action Task Force (FATF) will be seeking public comment on updated guidance related to virtual assets. A post-meeting statement from the international regulatory body recapped plans for the coming year, including its dealings with digital asset standards.
In June 2019, the FATF released guidance affecting cryptocurrency and digital assets. The most notable portion was the so-called "travel rule" which required virtual asset providers (VASPs) to provide originator and beneficiary information to one another during transactions. The heightened standards are aimed at curbing money laundering and illicit finance.
Many expressed concerns over the implications of the travel rule and argued a solution would take time to develop. The crypto industry has responded with a number of possible solutions for compliance. The FATF has now begun its second 12-month review of the global implementation of its standards, according to a statement. Its first review showed the public and private sectors made progress in compliance, but both required additional guidance to reach adequate implementation.
Now, a public consultation draft with amendments and clarifications to the 2019 guidance will be coming in March. The updated guidance is slated for release in June.
"The FATF has now updated its guidance to address specific areas, including on how to apply the FATF Standards to so-called stablecoins, how public and private sectors can implement the travel rule, and how to address the risks of disintermediated peer-to-peer transactions," the body said in a statement.