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Binance has deployed CipherTrace Traveler to enable the exchange's compliance with global "travel rule" regulations. Traveler is designed to support Virtual Asset Service Providers (VASPs), including cryptocurrency exchanges, custody providers, OTC trading desks, banks and other financial institutions, to achieve compliance with the Financial Crimes Enforcement Network's (FinCEN) and the Financial Action Task Force's (FATF) travel rule regulations.

South Africa's Ministry of Finance proposed amendments to the Financial Intelligence Centre Act (FICA) for public comment. They aim to align FICA with the current International Standards of the Financial Action Task Force (FATF) as well as with recent legislative amendments. This will include new rules around virtual asset service providers (VASPs) including further responsibilities around which information they have to maintain and conducting due diligence on customers. https://www.fic.gov.za/Documents/Website%20Notice%20Consultation%20Paper%20re%20proposed%20amendments%20of%20schedules%20to%20the%20FIC%20Act%202001%20(Act%2038%20of%202001).pd

If the Financial Action Task Force (FATF) has its way, stablecoin payments networks will no longer be able to take a hands-off approach to knowing who their users are. In a July report to the G20, FATF suggested that "central developers and governance bodies of so-called stablecoins" should be treated either as financial institutions or as virtual asset service providers (VASPs). Hence, stablecoin platforms would probably have to abide by the FATF's Recommendation 10, which prohibits financial institutions from "keeping anonymous accounts or accounts in obviously fictitious names." Stablecoin platforms only currently apply customer due diligence to the small minority of users who purchase, sell and redeem stablecoins for fiat currency.

In a report to the G20 finance ministers and central bank governors, the Financial Action Task Force (FATF) said regulators need to cooperate to make measures such as the "travel rule" more effective. The organization will work to develop an international framework for authorities to coordinate and share information about virtual asset service providers (VASPs). The FATF also said it will be providing specific guidance on stablecoins for regulators at some future point.

The Netherland's ING Bank has developed a protocol to assist with the Financial Action Task Force's Travel Rule requirement for crypto exchanges and firms dealing in digital assets. It has also been backed by Standard Chartered Bank, Fidelity Digital Assets and BitGo, and other crypto firms. It was also partly backed by the InterVASP working group which released the IVMS-101 standard, a way VASPs can agree on the format of the message payloads their solutions will transfer.

Tether, will test trial a solution that will allow it to comply with the travel rule proposed by the Financial Action Task Force (FATF). The solution that will be tested, provided by Notabene, a software company that offers compliance solutions, will allow this information to be relayed between virtual asset service providers (VASPs). This solution aims to make tether (USDT) more friendly to law enforcement agencies all around the world.

The IMF published two papers aimed at assisting countries in their understanding and mitigation of the money laundering (ML), terror financing (TF), and financing of the proliferation of weapons of mass destruction (PF) risks related to virtual assets (VAs). The first paper explains why VAs are vulnerable for misuse for ML/TF/PF purposes and clarifies which assets and service providers should be subject to AML/CFT measures. It discusses the measures that all countries should take, and the type of action necessary in instances of criminal misuse of VA. The second paper focuses on the AML/CFT regulatory and supervisory framework for virtual asset service providers (VASPs), and discusses the necessary AML/CFT measures and provide examples of practical solutions to implement them. https://www.imf.org/en/Publications/fintech-notes/Issues/2021/10/14/Virtual-Assets-and-Anti-Money-Laundering-and-Combating-the-Financing-of-Terrorism-1-463654 https://www.imf.org/en/Publications/fintech-notes/Issues/2021/10/14/Virtual-Assets-and-Anti-Money-Laundering-and-Combating-the-Financing-of-Terrorism-2-463657

Hong Kong's Financial Services and Treasury Bureau (FSTB) published a policy statement on virtual assets. It is putting together a licensing regime for virtual asset service providers that will align their requirements to those currently applicable to traditional financial institutions. The Securities and Futures Commission will also conduct a public consultation on retail investors' access to virtual assets under the new regulations, such as through virtual asset exchange traded funds. Also, it said that the government is open to considering property rights for tokenised assets and the legality of smart contracts, so as to provide a solid legal foundation for their development. https://www.info.gov.hk/gia/general/202210/31/P2022103000454.htm

The Central Bank of the United Arab Emirates (CBUAE) issued new guidance concerning anti-money laundering (AML) and countering financing of terrorism (CFT) measures for crypto businesses on May 31, 2023. It outlines the risks arising from dealing with virtual asset and virtual asset service providers (VASPs), taking into account the recommendations of the Financial Action Task Force (FATF). The new rules will come into effect in one month. https://www.centralbank.ae/media/avwlktgy/cbuae-guidance-for-lfis-on-risks-related-to-virtual-assets-and-virtual-assets-providers_final-clean-version1.pdf

The U.S. Treasury Department Financial Crimes Enforcement Network (FINCEN) officially withdrew its proposed rule, introduced in 2020, that would have imposed know-your-customer (KYC) requirements on unhosted wallets. Basically, it became clear that it would be practically impossible for exchanges and other virtual asset service providers (VASPs) to implement the proposed rules. https://www.federalregister.gov/documents/2024/08/16/2024-16461/semiannual-agenda#p-72

The Bank of Ghana (BOG) published draft guidelines on digital asset regulation for feedback from the public and industry stakeholders. The central bank proposes an eight-pillar crypto regulation framework, mainly intensifying the registration and reporting requirements of crypto exchanges or virtual asset service providers (VASPs). The proposed regulations will require crypto exchanges to monitor and report suspicious transactions and comply with the Financial Action Task Force's (FATF's) Travel Rule. https://www.bog.gov.gh/wp-content/uploads/2024/08/Draft-Guidelines-on-Digital-Assets.pdf