An Overview of FATF’s Guidance For Crypto Platforms

Wilfred Michael 

Wilfred Michael

News reporter

21 June 2019,
An Overview of FATF’s Guidance For Crypto Platforms

The Financial Action Task Force (FATF) today finally released its long-awaited guidance pamphlet for Virtual Asset Service Providers (VASPs), namely crypto hedge funds, exchanges, and wallet providers.

We noted in our previous report that this could cover the over 200 regions currently implementing anti-money laundering and counter-terrorism financing laws prescribed by the FATF.

In this article, we provide an overview of the 52-page rules expected to serve as a guide for countries who want to regulate cryptocurrency businesses in their respective jurisdictions.

An Overview of FATF Laws For Crypto Platforms

1. Crypto-assets should come under the same classification as “property,” “proceeds,” “funds,” “funds or other assets.”

2. All crypto platforms must at the least register with regulators within the region which it operates and obtain an operating license.

3. Traditional financial institutions, by virtue of their operating permits, would no longer need to register separately to run a crypto firm.

4. Local regulators must at all times ensure that crypto platforms in their countries comply with AML/CFT laws and impose sanctions on those who fail to obey the rules.

5. Crypto platforms must collect user data from transactions exceeding USD/EUR 1,000 with the only exception being if these transactions are occasional.

6. Local regulators must ensure the crypto platform initiating a transaction hold accurate data regarding the individual or corporation in question and also information regarding the recipient.

They would have to share this information with the receiving platform before processing the transaction and also make it available to local authorities upon request.


7. Similar to FinCEN, SEC, and CFTC authorities, the U.S Department of Justice (DOJ) has broad authority to prosecute crypto platforms and individuals who violate U.S. law, even though they may not be physically located inside the United States.


8. Countries should rapidly, constructively, and effectively provide the broadest possible range of international co-operation about money laundering, predicate offenses, and terrorist financing relating to cryptocurrencies.

You may want to read our earlier report to learn how these new rules apply to you as a cryptocurrency user.


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