On September 3rd, the FATF chairman announced the need for enhanced transparency concerning shell companies amid rising cryptocurrency usage in illicit fund transfers.
FATF's New Rules
The introduction of new FATF standards aims to improve the fight against money laundering and terrorism financing. These changes will require financial institutions and crypto exchanges to implement stricter KYC protocols.
Market Impact
Stricter requirements may lead to increased compliance costs for crypto exchanges and impact the liquidity of tokens like BTC, ETH, USDT, and privacy coins.
Expert Opinion
Scott Bessent, Secretary of the Treasury, stated, 'The FATF plays an important role in the global fight to counter terrorism and proliferation financing... We are encouraged by the FATF’s adoption of reports that respond to private sector demand for more actionable information to combat financial crime.'
The introduction of FATF's new rules emphasizes the importance of transparency in the financial sector, particularly in the context of cryptocurrencies, creating new challenges for crypto companies.
