International regulators have hinted that they may seek to block global stablecoins if their operators attempt to launch tokens in jurisdictions beyond their remit. Also, they suggested that they could be prepared to redouble their regulatory efforts as Virtual Asset Service Providers (VASPs) struggle to implement earlier guidelines.
Today, at the V20 Summit, an online meeting between crypto industry bodies and international regulators, David Lewis, the Executive Secretary and G20 Deputy of the Financial Action Task Force, (FATF) softened the blow by stating,
No loopholes allowed
Lewis added that 2019’s guidelines, which included the issuance of the Travel Rule, were “only the first step,” and added that the FATF will not tolerate countries leaving loopholes in their legislation that allows crypto firms to step around the Travel Rule and other anti-money laundering protocols.
Lewis remarked that VASP Travel Rule implementation was “still relatively nascent” with many firms “unused to abiding” by the same sort of regulations that financial service providers have been obliged to adopt.
“I don’t think this industry wants to be seen as one that attracts [criminals] and money-launderers.”
She moved to address concerns about data-sharing rules and the “sunrise issue,” a concern that different nations adopting FATF guidelines at different times will cause disruption and confusion for those attempting to implement global, industry-wide standards.
Garcia stated that the FATF had faced these sorts of problems before and claimed that they were not insurmountable hurdles.
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