Virtual assets are vulnerable to being misused by criminals to launder money and fund terrorism as they allow greater levels of anonymity, have global reach making it easier for cross-border payments, and they can be traded easily. To be remembered that virtual assets trading is evolving rapidly.
A virtual asset is a digital representation of value that can be digitally traded, or transferred, and can be used for payment or investment purposes. Virtual assets do not include digital representations of fiat currencies, securities and other financial assets that are already covered elsewhere in the FATF Recommendations.
Virtual Asset Service Providers
Virtual asset service provider means any natural or legal person who is not covered elsewhere under the Recommendations, and as a business conducts one or more of the following activities or operations for or on behalf of another natural or legal person:
i. exchange between virtual assets and fiat currencies;
ii. exchange between one or more forms of virtual assets;
iii. transfer of virtual assets;
iv. safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets; and
v. participation in and provision of financial services related to an issuer’s offer and/or sale of a virtual asset.
virtual assets, transfer means to conduct a transaction on behalf of another natural or
legal person that moves a virtual asset from one virtual asset address or account to another. [Ref: FATF (2012-2019), International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation, FATF, Paris, France]
Virtual Asset Exchanges
Issuing virtual assets such as virtual currency/digital tokens to facilitate virtual asset trading or Providing a digital online platform facilitating virtual asset trading. Trading may occur between virtual assets or between virtual asset and currency.
Virtual Asset Wallet Providers
Providing storage for virtual assets or fiat currency on behalf of others and then facilitating exchanges between virtual assets or fiat currency.
Virtual Asset Broking
Arranging transactions involving virtual assets.
Initial Coin Offering (ICO) Providers
Issuing and selling virtual assets/digital tokens to the public (where tokens are not “financial products” under Financial Markets Conduct Act).