Updated report on anti-money laundering and terrorist financing related to cryptocurrency
On June 27, the global financial task force (FATF) released its sixth updated report on measures to combat money laundering and terrorist financing related to cryptocurrency and digital asset service providers (VASP). The report highlights significant progress in refining the legal framework and enhancing oversight; however, there are still many challenges regarding licensing, VASP registration, and risk management from foreign VASPs.
Challenges in licensing and risk management of VASP
Although countries have established many standard regulations, enforcement still has many gaps, making the identification and monitoring of VASPs insufficiently tight. Risks arise from VASPs located in loose jurisdictions, making it difficult to control, creating opportunities for fraud and abuse of cryptocurrency to flourish. This is a bottleneck that requires synchronized solutions and multilateral coordination.
Serious security incident: North Korean hacker attacks ByBit exchange
The report also reveals a serious incident this year: a North Korean hacker group stole $1.46 billion in digital assets from the ByBit exchange. The recovery rate of stolen assets currently stands at only 3.8%, reflecting a major challenge in recovering digital assets. This event highlights the urgent need for international cooperation in asset recovery and preventing similar attacks.
Illegal cryptocurrency transactions surge
Forecast for 2024, the total value of illegal on-chain transactions related to fraudulent activities will reach $51 billion. This is a warning sign regarding the level of cryptocurrency use for fraud, money laundering, and terrorism, which continues to evolve complexly, threatening the stability of the global financial system.
Call for enhanced international management cooperation
FATF emphasizes the necessity of strengthening international cooperation in monitoring, investigating, and addressing violations related to cryptocurrency. Establishing stringent standards, advanced technical tools, and effective information exchange mechanisms will help prevent criminals from exploiting cryptocurrency as a means of money laundering and terrorist financing, protecting global financial security.
Source: https://tintucbitcoin.com/fatf-canh-bao-rui-ro-tai-san-so/
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