The Financial Action Task Force says it is set to publish an update to its guidelines on cryptocurrencies and virtual asset service providers; a catch-all term including exchanges, wallet providers, and custody platforms, among others. This updated document will also be made available for public consultation from key stakeholders. According to a circular issued by the FATF on Thursday, the decision to update its guidance on VASPs was the result of the organization’s three-day plenary session. As part of its announcement, the intergovernmental that focuses on policies aimed at combating money laundering and terrorist financing revealed that the updated guidelines …

The unique power of blockchain and cryptocurrency can also be considered their weakness. Crypto users gain unparalleled privacy for financial transactions through a decentralized transactional system. Governments, however, demand transparency in financial transactions for legal concerns. This creates a paradox. People are less inclined to use financial instruments if, in doing so, they expose their money to the world. Conversely, there are a number of regulations requiring financial institutions to counteract terrorism and money laundering — serious concerns for many governments. The crux of the issue is that most public blockchains require a consensus of all participants to validate transactions. …

French financial authorities are strengthening the country’s cryptocurrency regulations in a move to prevent illicit activities like money laundering and terrorism financing. On Dec. 9, several ministries in France jointly introduced an order aiming to prevent anonymous digital asset transactions by banning anonymous crypto accounts. The new regulatory effort is backed by French finance minister Bruno Le Maire, overseas minister Sébastien Lecornu and junior economy minister Olivier Dussopt. The order is pursuant to Article 203 of France’s PACTE law, which stands for the Action Plan for Business Growth and Transformation. In the document, the ministries have admitted that digital assets …

Gazprombank Switzerland, a subsidiary of one of the largest banks in Russia, has piloted its Bitcoin (BTC) transaction service following regulatory approval by Swiss regulators. According to a Nov. 19 announcement, Gazprombank will provide its new cryptocurrency solution in collaboration with its long-running partners like fintech firm Avaloq and crypto custody provider Metaco. Gazprombank Switzerland CEO Roman Abdulin said that the new service intends to make crypto transactions “as easy as transactions with traditional assets,” stating: “Digital assets will become increasingly important for our clients and the global economy. We are pleased to work together with leading Swiss-based entities on …

Since the Financial Action Task Force, or FATF, introduced its controversial “travel rule” for businesses in the crypto space, the debate over the suitability of established regulatory frameworks for cryptocurrencies has been unrelenting. Some experts, however, believe that the industry’s experience with the FATF guidelines is only the tip of the iceberg and hints at more significant challenges down the line. During the concluding panel of the V20 conference on Nov. 18, Siân Jones said that the collision between new, decentralized models of finance and older models of regulation has implications that both regulators and the community are not yet …

In 2019, the Financial Action Task Force asked jurisdictions worldwide to adopt its regulatory guidelines for virtual assets. At the V20 conference today, held online, David Lewis—executive secretary and G20 deputy at the organization—gave an overview of how implementation and business response have gone so far. The FATF is an intergovernmental organization tasked with combating money laundering. Its 2019 directives for regulating crypto, which include a controversial section dubbed the “Travel Rule,” are designed to mitigate illicit uses of virtual assets, and to bring the sector into line with traditional banking regulations. Lewis told conference attendees that the majority of …

A blockchain analytics firm is urging crypto businesses to make compliance a top priority, as regulators step up requirements for virtual asset service providers. Bitcoin’s bullish 2020 has sparked an influx of crypto businesses with cutting-edge product features coming into the market — along with new blockchains, tokens, and DeFi protocols. All of these startups will need to meet the regulatory guidelines of the country where they base their business in. Crystal Blockchain says 2021 is shaping up to be an important year — and is advising crypto service companies to introduce compliance measures that meet regulatory and due diligence …

Regulation is sometimes positioned as the enemy of innovation, an antagonistic force that reduces progress in the name of bureaucracy. However, when implemented sensitively and proportionately, regulation can strengthen a private sector’s reputation by creating the conditions necessary for businesses to focus on and enhance innovation. Getting this right means working with entrepreneurs and providing them the opportunity to innovate and experiment while also enforcing standards that promote proper corporate governance and prevent illegal activity. Through ensuring robust controls, today’s evils such as money laundering and terrorist financing can be aptly combated. An open dialogue between regulators and businesses makes …

The Gibraltar Financial Services Commission (GFSC) has updated its regulations governing the operation of distributed ledger technology (DLT) providers to include the latest Financial Action Task Force (FATF) rules. The GFSC said this is in response to blockchain’s fast-moving nature, especially as the agency seeks to support companies while protecting consumers. The updated guidance notes includes the latest FATF recommendations around virtual asset service providers (VASP) and the ‘Travel Rule,’ which requires VASPs to collect and transfer customer information in transactions. GFSC recommends considering “virtual assets as ‘property,’ ‘proceeds,’ ‘funds,’ ‘funds or other assets,’ or other ‘corresponding value.’” Under GFSC’s …

A new report by the Financial Action Task Force, or FATF, details a series of red flags that can help identify illicit activity involving cryptocurrencies. Among them are a general set of guidelines involving exchanges in jurisdictions with weaker regulations, where Binance is seemingly singled out for often moving to avoid stronger regulatory oversight. The report, published on Sept. 14, lists a variety of red flags for spotting money laundering or terrorism financing, grouped by categories. Most red flags cited are commonly seen in traditional finance as well: young or old people suddenly transacting for huge sums of value, or …

Blockchain company AnChain.AI and decentralized finance and technology provider Bluehelix plan to launch solutions addressing compliance within blockchain networks. According to reports, the two companies will roll out its Blockchain Ecosystem Intelligence, or BEI, risk engine solution. BEI is based on an API and will offer comprehensive real-time, preventive blockchain intelligence. AnChain.AI said BEI looks over 100 million crypto address and smart contracts and sifts through this using a machine learning model. It will find the best compliance structure to meet anti-money laundering (AML) when determining the source and destination of the funds. Bluehelix’s cloud platform delivers these results to …

The current state of blockchain innovation in the United States is a tale of two asset classes. On one hand, the Securities and Exchange Commission’s reluctance to embrace or endorse blockchain-based securities has ground the innovation in that sector to a crawl. On the other hand, regulators in the banking, money transmission and commodities spaces have demonstrated a willingness to work with blockchain companies to permit the offering of assets and asset classes in those spaces. As a result, non-securities blockchain-based assets and businesses have proliferated in recent years. Years after the initial coin offering craze, the SEC and the …