Financial Action Task Force (FATF) is going to start accessing how companies are complying with the crypto standards set in the industry.
FATF stated that it is important for companies to carefully implement the requirements because of the nature of the digital asset industry in the world.
How FATF intends to assess the countries
As an inter-governmental organization, FATF was established to help fight issues with money laundering.
It has two regional organizations and about 37 member jurisdictions. On October 16th to 18th, Xiangmin, representing China’s government, chaired the FATF plenary meeting to discuss how FATF intends to monitor the countries involved.
There were more than 205 international organizations and jurisdictions who represented 800 delegates for the three-day event.
The main agenda was about Stablecoins and issues with some other digital assets. The members discussed how to approve their approach to solving money laundering issues and other related matters.
In June, FATF announced its requirements for cryptocurrency assets and other services related to crypto coins.
After the announcements, Central Bank governors, Finance Ministers, and G20 leaders gave their support and commitment to comply with the requirements and standards. Many countries have complied already.
The organization had stated that it would start monitoring how members comply with the set standards and provide a 12-month report in June next year.
In the plenary, FATF mentioned that it could assess each country’s activities differently to know whether the countries have taken the proper step for implementing the new crypto standards.
It stated that countries that have already evaluated the procedures need to provide comprehensive reports on the evaluation methods they used.
They should report to the organization with information on the actions the country has taken.
FATF reiterated that it is going to oversee the development and will continue engaging the private sector.
It will keep providing enough information to the members to make sure they understand the requirements and how to comply with them.
Stablecoins also under the watch of FATF
In the plenary, members agreed that stablecoins should also be part of the type of assets for evaluation.
They argued that stablecoins, if not monitored, could have severe implications on terrorists and money laundering financial risks.
The nature of the digital asset could cause an imbalance in the global digital asset ecosystem.
Generally, stablecoins are also subject to monitoring by the FATF. The organization will monitor these assets either as traditional financial assets or emerging asserts.
FATF retreated that it is important to keep tabs on these assets if the organization is serious about protecting investors’ interest in the market.
Given the high volatility of the crypto market, constant monitoring and follow-ups will help keep the digital currencies in check.
Since stablecoins is increasing in popularity, it could become adopted globally in no distant time.
In that regard, it’s important to keep the asset in check because of the high financial risks it possesses.