Speaking at the V20 conference, FATF Executive Secretary David LEWIS summarized how crypto companies comply with established rules. He noted that most jurisdictions have transposed the guidelines into domestic law. However, when it comes to virtual asset service providers (VASPs), adaptation to the “road rule” remains immature, and at this stage, the established standards are not being implemented globally and effectively.
The total volume of cryptocurrency used for illegal activities remains low, but the regulator is especially concerned about the mechanisms and tools used to increase privacy, including decentralized exchanges, anonymous coins and mixers. It also confirmed the FATF's suspicions of businesses that move frequently.
The FATF Secretary added that the issuance of stablecoins will become impossible to control if all 200 countries in the area of responsibility do not effectively implement the standards. The FATF plans to publish a second review of the implementation of the guidelines worldwide in June 2021.