The latest FATF virtual asset risk guide on the international anti-money laundering weathervane

Real FATF"Virtual Asset thiab Virtual Asset Service Provider Risk Guide"(Update Guidelines for Risk-Based Approaches to Virtual Assets and Virtual Asset Service Providers), ce guidevirtual assets(Virtual Assets, hereinafter referred to as VAs); andVirtual asset service provider(Virtual Asset Service Providers, hereinafter referred to as VASP), have established management procedures and made recommendations for the management of financial transactions and financial enterprises of virtual assets.

This report provides solid guidance for the development of integrated and effective VR surveillance for communities around the world or for the development of security protections blocking financial protection and financial corruption in our country.International anti-money laundering weather vane.

Why is the FATF so relevant?

Those who follow the Bingsa legal team should keep in mind that in an article where we learned about our own clothing issue, we mentioned a vague organization that asked us to change and improve its laws. FATF (For more information, see “Deciding on 'personalized delivery' data in multiple states, what will happen to you?”). What is this organization? Why are you so powerful? It starts with too his history.

FATF Yog (Financial Action Task Force)the most famousThe global financial market and financially manipulated financial institutions are agencies closely linked to governmentResponsible for setting international standards for the protection of financial markets and financial crime, preventing these crimes from committing acts of aggression against the state and the world.

At the G7 summit in Paris in 1989, the G7 and the European Unioninternational financial marketsAs this poses a major threat to financial institutions and businesses, the FATF was created to counter the growing threat from domestic and international financial markets by The meeting brought together G7 member states, the European Commission and eight countries. In the aftermath of September 11, the FATF extended its operations in October 2001 to fight money laundering.Prevention of financial abuse. added in 2012The war on the financial development of weapons of mass destructionresponsible.

The FATF has worked very well to prevent laundry for a long time, and the "40 recommendations" and "9 special recommendations" (409 recommendations) developed by the FATFThe most authorized and sought-after international standard in the fight against money laundering. Between 1991 and 1992, the number of FATF members increased from 16 to 28. In 2000, the FATF expanded to 31 Member States and then to 39 Member States. Includes 37 member countries (governors) and 2 regional organizations (UK, US, China, Japan, European Union, etc.).He started to cover all financial areas of the world.

How Does a Risk Book Affect Virtual Currency and NFTs?

(1) Modify the VA and VASP definitions

In the Virtual Asset Risk Guide, the FATF directly provides proprietary models for virtual assets (VA).digital presentation of value. can be completedDigital transactions (digital representation of value)WhereDigital transmissionand you can usePaymentWhereInvestmentsgoal. VA does not include digital representation of trust funds, contracts and other financial assets that have already been mentioned elsewhere in the FATF strategy.

Virtual Asset Service Providers (VASPs) are defined by specialized services and business models as long as a natural or legal person who develops and provides one of the following certified services which is VASP by the FATF and uses surveillance developed by FATF agreements and standards. .. It is associated with the international financial management of the fight against money laundering and terrorism.

1. Provide exchange services between virtual currency and fiat assets

2. Provide exchange services for one or more types of virtual assets;

3. Provision of exchange / exchange of goods services (here "exchange" means, in the context of virtual assets, the exchange of virtual assets by address or account in the name of another person physical or moral);

4. Provide tools or methods to manage or store virtual assets.

5. Participate and provide financial services related to virtual assets.

At the same time, the FATF made it clear for the first time that the key concepts and terms of the VA and the VASP were not changed, but needed to be changed.We make changes and adjustments in accordance with particular developments and practices in international financial protection.

This description is also useful for developing effective management procedures to prevent the use of VA laundering and financial harassment, and for finding the following from various sources: Announcements and recommendations made by the FATF over the years. years concerning the AV and the VASP are not difficult. The FATF raises the bar in many ways with simple definitions.The whole will be interesting.

(2) Is the NFT a VA to watch?

In the process of risk assessment of virtual assets released by the FATF this year, the question of whether NFTs, which fell on fire this year, can follow the same rules as VAs, correct answer.

Regarding NFTs, the FATF first defines the following: Crypto Collectibles).

so,The FATF does not currently treat assets like VAs.. However, for the short time since the emergence of the NFT, the FATF products are still in the testing phase, will they be classified according to special VAs and will they include future monitoring?The importance lies in the characteristics of NFT and its effectiveness in the real world.

These concepts are more in tune with the notions of Sister Sa's legal team: NFTs differ in virtual outcomes due to their uniqueness and inconsistency. This is the key to NFT compliance. It is important to stay away from NFTs. Both the size of the hype and the budget. At the same time, the FATF said:Certain non-VA NFT products may fall into the VA category approved by the FATF if they have actually been used for payment or investment purposes.Again, a warning from the NFT on protecting financial markets and preventing financial fraud.

Currently, Korea has a short period of development of NFT, so there are no legal interventions in time, and the second market is not yet open. The timing is good news. In the context of NFT, it can be seen that the FATF has yet to find that NFT products are riskier in terms of money laundering and money laundering and still fall under the category of virtual digital assets. This needs to be done with caution from several countries to NFTs. Take the example of our large national company. We recently opened the same jobs for NFT holders from the first batch of NFT, which is 180 days old, but still has the features we offer. Set a higher priority to give back to the recipient.In fact, you should keep it for at least two years.

So we have reason to guess.As long as NFTs can maintain their unique and long-term visibility, national and international regulatory procedures can avoid the risks of money laundering and bad funding, and should open up a second market.

enter at the end

We regret that we do not see anything related to the metaverse in the risk profile of the assets provided by the FATF at this time. It is undeniable that there are many legal issues that need to be resolved quickly in the Metaverse, and especially a few days ago, gangs have emerged in many parts of Korea. Korea uses metaverse banners to defraud and illegally embezzle public funds.This is not a legal issue for the Metaverse itself, but you should be aware of the many risks that a Metaverse can create.

VA, which is preferred in the FATF,Global financial protection and the prevention of virtual currency financial fraud have become the norm., companies should not fall into these risks. andThe NFT is still in the inspection phase, the service managing the situation and operational uncertainty., the Sister Sa legal team reiterates to all stakeholders that avoiding bad hype is a long term solution for the NFT industry.