• UGI USER
  • Mar 31, 2024
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MANY COUNTRIES YET TO FULLY IMPLEMENT STEPS TO PREVENT MISUSE OF VIRTUAL ASSETS, SAYS FATF

Why in News?

FATF Report on Virtual Assets Implementation

Overview of FATF Findings:

The Financial Action Task Force (FATF) conducted a survey on the implementation status of its requirements regarding virtual assets and virtual asset service providers (VASPs).The survey revealed that many countries are yet to fully implement FATF standards aimed at preventing the misuse of virtual assets and VASPs.

India’s Compliance Status:

  • India has conducted a risk assessment covering virtual assets and VASPs and has explicitly prohibited their use.The country has enacted legislation and regulations requiring VASPs to be registered or licensed and has applied Anti-money

Laundering/Counter-Terrorism Financing measures.

  • Additionally, India has conducted supervisory inspections, taken enforcement actions against VASPs, and enacted the travel rule for VASPs.

Status of Other Jurisdictions:

  • China, Egypt, and Saudi Arabia have explicitly prohibited the use of virtual assets and VASPs, while Seychelles and Indonesia are in progress.
Virtual assets refer to ‘any digital representation of value that can be used for payment’