Basic Attention Token
$0.22203 0.89%
BAT · 29w

How will Brave handle FATF regulations? It appears Brave qualifies as a VASP(Virtual Asset Service Provider)

The Financial Action Task Force (FATF) has issued a shot across the bow of the cryptocurrency industry, with interpretative notes and clarifications for virtual asset service providers (VASPs).

The move comes a month after the task force warned in February that updates to its recommendations would be coming as early as this month. After a brief period open for public feedback, the group has released its new notes and clarifications.

They are as bad as many had feared.

The draconian measures, ostensibly designed to ensure compliance with AML (anti-money laundering) and CFT (combatting the financing of terrorism) regulations, create serious threats to the operability of crypto exchanges and other digital asset service providers.

Fiat currencies, of course, cannot be used for illegal purposes.

FATF: We Are Authorized To Use (Task) Force

The task force’s new interpretations and clarifications, released June 19, place substantial reporting burdens on the movement of digital assets. Notably, the provisions require digital currency operators to:

“… obtain and hold required and accurate originator [sender] information and required beneficiary [recipient] information and submit the information to beneficiary institutions … if any. Further, countries should ensure that beneficiary institutions … obtain and hold required (not necessarily accurate) originator information and required and accurate beneficiary information …”

– Financial Action Task Force, Guidance For a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers

Exchanges are required to be licensed or registered, implement customer due diligence, and ensure accurate record keeping and report suspicious transactions. 

Great Expectations, Blunt Instruments, And Ill-Fitting Gloves

The FATF is an intergovernmental organization formed in 1989 to combat money-laundering and creates guidelines on behalf of its 37 member co...

Continue on cryptobriefing.com
Recent news