Cryptoassets and digital finance industry membership body, Global Digital Finance (GDF), today issued a mixed response to the Financial Action Task Force (FATF)'s recent consultation on crypto.
As a global anti-money laundering (AML) watchdog, the FATF's crypto consultation sets out guidance for regulators and the wider industry, with regard to spot exchanges, custody, decentralised finance (DeFi), stablecoins, and peer-to-peer (P2P) transactions.
The GDF response outlines that their members appreciate the additional clarifications provided by the FATF consultation - particularly with regard to the travel rule. However, it expresses concerns around the unintended consequences for centralised VASPs, who may face an increased regulatory burden, compared to other sectors.
Malcolm Wright, GDF’s advisory council chair and co-lead of the AML working group who put together GDF’s consultation response says: “This latest consultation sets out guidance for the industry and regulators that is far-reaching, covering not just spot exchanges and custody but also decentralised finance (DeFi), Stablecoins, and Peer-to-Peer (P2P) transactions, all of which may fall within the regulatory perimeter. We have a duty as responsible innovators to help ensure the future is shaped commensurate with the risks that each ecosystem poses.”