FATF defers finalizing its crypto guidance until October; industry players celebrate short-term win

Quick Take

  • The FATF shared the results of its most recent plenary meeting today.
  • This included an overview of its forthcoming 12-month review of the application of its crypto guidance.
  • It held off on finalizing that guidance until October, allowing more time for the industry to voice its concerns. 

The global anti-money laundering watchdog's latest review shows a majority of the jurisdictions under its purview have yet to implement its crypto guidance. But perhaps more importantly, that controversial guidance isn't final yet.

After the Financial Action Task Force's (FATF) issued guidance in 2019 that targeted crypto exchanges and money transmitters, or Virtual Asset Service Providers (VASPs) as it calls them, the Task Force committed to completing a review on the status of implementation every 12 months.

Last year's 12-month review dropped a bombshell on decentralized finance (DeFi) by stating that jurisdictions uncomfortable with noncustodial wallets could ban exchanges that allow their use in peer-to-peer transactions.

Today the watchdog released an overview of its second 12-month review, which will be released July 5, during a press conference Friday associated with its most recent plenary meeting. It also said it would delay finalizing its guidance until October. That has many in the industry breathing a sigh o