- The latest FATF report underscored the need for more regulation in the financial sector.
- Digital transformation may align the crypto market in a favorable way.
The 2021-2022 FATF report is finally out, and as per Binance [BNB] CEO CZ, some standards highlighted in it might affect the crypto industry. However, the expectations were positive, and may even push the market in the right direction. Among the key highlights was the fact that the FATF advocated for the creation of online courses, which would offer education to the masses.
#Binance is also pleased to see FATF using the report to shine a light on their developing online courses, used to train people in the fields of virtual assets and VASPs.
Education is key (1.).
— CZ ? Binance (@cz_binance) February 8, 2023
How much are 1,10,100 BNBs worth today?
But does this mean that Bitcoin [BTC] and altcoins are in the clear? Well, not necessarily. The FATF report highlighted financial crime and money laundering as key areas that needed more attention. It also advocated for leveraging technology that would allow regulators to combat these challenges more effectively.
Blockchain technology is currently among the top technologies that may help overcome this challenge. However, the focus on money laundering may still highlight some risks. Regulators might see this as an opportunity to launch an offensive against cryptocurrencies. There have been incidents in which cryptocurrencies were viewed as a threat, only for the likes of Bitcoin to turn up as one of the most transparent money systems.
FATF puts the regulatory wheel in motion
The points in the FATF’s digital transformation agenda suggested that there might be a regulatory framework for virtual assets in 2023. The report highlighted the need for G20 countries to implement the FATF’s revised standards, which are transparency, beneficial ownership, and virtual currencies. Here’s a look at what the FATF had to say about G20 countries’ thoughts on crypto regulation.
“Their statements welcomed FATF’s work to regulate virtual assets and reaffirmed their commitment to implement the FATF Standard to prevent the misuse of crypto for illicit financing.”
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It might be too early to tell what to expect, but the tone suggested that it would probably support the broader crypto market. This is because the FATF’s tone underscored the need to put in place measures without harming those already in the ecosystem.
We also appreciated reading about FATF’s participation at G20 summits, and their emphasis on implementation.
Global standards provide clarity and consistency – key factors of effective regulation, but they can only be helpful if implemented across the board.
— CZ ? Binance (@cz_binance) February 8, 2023
Past FATF reports may have generated some concern about the state of the market but this new report takes a laid back stance. Nevertheless, this is does not offer much clarity on the type of regulation to expect. Meanwhile, global crypto market cap was up by 0.90% in the last 24 hours at press time, amid the lack of FUD-inducing material in the FATF report.
