The Financial Action Task Force (FATF) has published its Report to the G20 Finance Ministers and Central Bank Governors on stablecoins.
The FSB considers that stablecoins are a type of crypto-asset ‘that aims to maintain a stable value relative to a specified asset, or a pool or basket of assets to other assets’. So-called stablecoins could be classified as virtual assets under the revised FATF Standards. Depending on the design of the so-called stablecoin, it may instead be classified as a traditional financial asset (e.g. a security) under the revised FATF Standards or national regulations. As all stablecoins are a type of either virtual or financial asset, they are covered by the revised FATF Standards.
The Report focuses on the following points:
– Money Laundering / Terrorist Financing (ML/TF) risks of stablecoins;
– Application of the Revised FATF Standards;
– Residual ML/TF risks;
– Enhancing the global AML/CFT framework for virtual assets and stablecoins.