Photo by Jon Sailer on UnsplashIn 2019, the Financial Action Task Force (FATF) published FATF Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers (the FATF Guidance) updating a set of standards in relation to cryptocurrency (virtual assets) and virtual asset service providers (VASPs) to address money laundering and terrorist financing and further clarify how national authorities should implement these standards.The FATF Guidance deals mainly with VASPs, a category which, among others, includes crypto exchanges. In the FATF Guidance, crypto exchanges are conceived as legal entities or individuals who as a business conduct for or on behalf of another person exchange of both crypto-to-crypto and crypto-to-fiat assets. This definition covers centralized custodial crypto exchanges; however, it leaves some room for ambiguity in relation to decentralized exchanges (DEXs), which by design are not operated by any responsible person.Before considering the FATF Guidance\u2019s applicability to DEXs, let\u2019s have a general understanding of what principles crypto exchanges should be in line with. According to the FATF Guidance, national authorities have to impose Anti-Money Laundering\/Combating the Financing of Terrorism (AML\/CFT) requirements on crypto exchanges applying a risk-based approach to their activities (e.g., taking into account their size and nature). It should be noted that the FATF Guidance is a set of standards that forms the basis for coordinated international actions and has no force of law. While applying them, countries may derogate from or alter these standards based on the specificities in their legal systems. For instance, crypto-to-crypto exchanges covered by the FATF Guidance, currently do not fall under the EU\u2019s Fifth Anti-Money Laundering Directive (\u2018the 5AMLD\u2019) provisions (the latter regulates only crypto-to-fiat exchanges).General AML\/CFT compliance rules for crypto exchangesGenerally, key aspects that should be ensured for AML\/CFT purposes from an international perspective are:1. Crypto exchanges should be licensed or\u2026<\/p>","protected":false},"excerpt":{"rendered":"
Photo by Jon Sailer on UnsplashIn 2019, the Financial Action Task Force (FATF) published FATF Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset [\u2026]<\/span><\/p>","protected":false},"author":0,"featured_media":2796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/es\/wp-json\/wp\/v2\/posts\/2959"}],"collection":[{"href":"https:\/\/afluxcoin.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/es\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/es\/wp-json\/wp\/v2\/comments?post=2959"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/es\/wp-json\/wp\/v2\/posts\/2959\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/es\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/es\/wp-json\/wp\/v2\/media?parent=2959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/es\/wp-json\/wp\/v2\/categories?post=2959"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/es\/wp-json\/wp\/v2\/tags?post=2959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}