Virtual asset adoption within traditional finance can only occur with clear regulation. A major piece of this puzzle is anti-money laundering and counter-terrorist financing (“AML/CTF”) obligations. Without clear rules, many banks struggle to open accounts for blockchain businesses. It is also far more challenging for blockchain businesses themselves to create strong policies. The risks themselves are left to inconsistent industry practice.
The global standard-setter for AML/CTF has now finalised and issued its long-awaited guidance on the subject. This post outlines the key points, sharing our views and providing insight on the regulatory approach to virtual assets and virtual asset service providers (“VASPs”) in various jurisdictions.