The new draft guidance on virtual assets from the Financial Action Task Force (FATF) might its attempt to keep up with the rising pace of the virtual asset market, according to Sigma Ratings.
FATF, which was founded by the G7, released a proposed draft guidance on virtual assets, which now applies AML and KYC rules to stablecoins and non-fungible tokens (NFTs).
NFTs have seen a rise in popularity over the past few weeks, with football teams, musicians, art galleries, fashion brands and many others getting on the band wagon.
A report from TechCrunch recently reported that blockchain experts fear NFTs could be used for money laundering as the compliance for these tokens is not clear.
In a new article from Sigma Ratings, it claims the FATF’s draft could be an attempt to keep up with the “fast-moving virtual asset sphere.”
It said, “In fact, less than 2 days following the FATF’s publication, both Paypal and VISA, each with more than 50% market share in their respective spaces, entered the game, with the latter billing the introduction of its stablecoin as “a major industry first in bridging the worlds of digital and traditional fiat currencies.”
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