FATF Report released this week asked that The G-20 finance ministers and central bank governors, the international financial watchdog said regulators need to cooperate to make measures such as the Travel Rule more effective. As such, the organization will work to develop an international framework for authorities to coordinate and share information about virtual asset service providers (VASPs).
As defined by FATF, a VASP is an open-ended term for crypto exchanges and peer-to-peer services as well as wallet providers and custodians. It can also include any business that trades or transacts in digital assets. This would make the global regulation of cryptocurrencies and stablecoins, in particular, more effective, FATF said.
FATF aims to develop a global network of supervisors for the crypto industry, and as such FATF will convene in autumn to discuss how to improve international cooperation.
FATF is also planning to make available a list of red flags indicating possible criminal activity to regulators at the same time.