October 20 — According to a Reuters report, the Financial Action Task Force (FATF) has announced that financial regulators across global jurisdictions must implement a licensing system for cryptocurrency exchanges, digital wallet providers, and initial coin offering (ICO) companies offering financial services. Additionally, they must establish specific anti-money laundering (AML) regulations.
About the Financial Action Task Force (FATF)
Established in 1989, FATF is a Paris-based global intergovernmental organization focused on coordinating AML policies worldwide. This week, FATF convened a plenary meeting with officials from 204 jurisdictions to discuss cryptocurrency regulations and other key matters.
Key Announcements from FATF
FATF President Marshall Billingslea revealed that the organization plans to release cryptocurrency guidelines and enforcement policies by June 2025. He stated:
"By June 2025, we will publish regulatory standards, guidelines, and additional clarifications for cryptocurrencies. We also aim to provide clear instructions for companies on implementing these standards."
Global AML Standards for Cryptocurrencies
In July, G20 nations committed to releasing a global AML framework for cryptocurrencies by October. As countries increasingly focus on cryptocurrency risks, FATF seeks to extend existing AML standards to the crypto sector. In a Friday (October 19) statement, the organization emphasized:
"All nations must collaborate to prevent crypto assets from being exploited by criminals and terrorists. FATF will implement regulations in phases and provide updated guidance on managing crypto asset services. Furthermore, FATF will assist law enforcement in identifying and investigating crypto-related crimes."
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FAQ Section
1. What is FATF’s main goal regarding cryptocurrencies?
FATF aims to ensure global coordination in regulating crypto assets to prevent their misuse for money laundering and terrorism financing.
2. When will FATF release its cryptocurrency guidelines?
The guidelines are expected by June 2025, including enforcement policies and compliance standards.
3. How will the licensing system affect crypto exchanges?
Exchanges must obtain formal approvals and adhere to AML requirements, increasing accountability but potentially raising operational costs.
4. Will these rules apply to decentralized platforms?
FATF’s current focus is on centralized services (e.g., exchanges), but decentralized platforms may face future scrutiny.
👉 Learn how these changes impact crypto trading
5. How can businesses prepare for FATF compliance?
Companies should audit their AML protocols, train staff, and monitor regulatory updates in their jurisdictions.
Final Thoughts
The FATF’s push for uniform licensing reflects growing institutional recognition of cryptocurrencies. While stricter rules may curb illicit activities, the industry must balance compliance with innovation.