FATF Says Regulation of Crypto Industry is Insufficient

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According to the Financial Action Task Force (FATF), even though several countries have made progress in regulating the cryptocurrency industry, there is still a long way to go.

According to the latest publication made by the regulator, tax crimes, attempts to evade sanctions, drug or arms trafficking and various types of fraud are associated with digital assets.

The document has revealed that during the covid-19 pandemic, several FATF members identified “an increased use of virtual assets to move and hide illicit funds.”

The institution has also reported there is a need to develop a “careful regulation” for stablecoins, as their mass adoption could increase the amount of anonymous P2P transactions through unregistered wallets.

Moreover, during its research, the FATF has found that out of 128 jurisdictions (38 FATF members and 90 representatives of FATF-style regional groups [FSRB]), only 58 have implemented the standards. Virtual asset service providers (VASPs) are regulated by 52 countries and prohibited by six.