The Financial Action Task Force (FATF) is open to amending the “travel rule,” its guidance for cryptocurrency exchanges and companies providing crypto services. The anti-money laundering watchdog said it is confident the crypto industry will implement complex data-sharing requirements, known colloquially as the “travel rule,” by the time its 12-month review comes around in June.
The updated guidance will help countries and virtual asset service providers understand their anti-money laundering/countering the financing of terrorism obligations and effectively implement the FATF’s requirements in critical areas, including how the FATF Standards should be applied to stable coins, travel rule implementation and how to address the risks of peer-to-peer transactions.
FATF has said previously the virtual asset industry had made progress, but there’s “a need for more excellent guidance to implement the revised requirements, including for low-capacity countries. FATF will publish the public consultation draft in March, it said. Feedback from the consultation will inform the final guidance, which the FATF expects to approve in June.