The Financial Action Task Force (FAFT) has changed its leader, as Germany is now presiding over the intergovernmental organization. The new change also highlighted the need for improved guidance on cryptocurrencies as the implementation of the revised crypto standards has not been met by many countries. There were also other reviews and updates within the organization.
Germany presides over FAFT
Dr. Marcus Pleyer of Germany is now the new head of FAFT. He takes the reins after the tenure of former president Xiangmin Liu from China ended. He is going to serve a two-year term as president of FAFT, which began on June 1. Pleyer is also the Deputy Director-General in Germany’s Ministry of Finance.
Pleyer wants to follow the template of former leader
On June 24, Pleyer rolled out his plans for the any-money laundering international organization. The virtual plenary was released and published on Wednesday, stating FAFT’s “new standards on virtual assets.”
He further stated that the plan is to build on the work of his predecessor and concentrate on opportunities technology will provide. In line with the goal, the organization plans to launch initiatives that will explore opportunities while monitoring risks.
Unlike China, Germany is more receptive to cryptocurrency and other related businesses that deal with blockchain technology, the report declared.
However, the country started regulating the crypto industry earlier this year and 40 banks in the country have agreed to offer crypto-related services.
Improvement of regulatory standards
At the plenary, the FAFT reported how the member countries performed in their crypto regulatory standards over 12 months. The report revealed that both the private and public sectors improved in the implementation of the reviewed FAFT standards. But the most impressive area is on the “travel rule” implementation for virtual assets service providers (VASPs), according to the organization.
Although FAFT mentioned that a revised standard on crypto-assets is not necessary, the organization stated that there is a need for further guidance on VASPs and virtual assets.
According to FAFT, the implementation will be beneficial to the FAFT global network, particularly those who are yet to implement the revised standards, FAFT noted.