The FATF issued a draft guidance on digital identity, referring to DLT technology and exchanges.

According to CoinDesk, the Financial Action Task Force (FATF) released its draft guidance on digital identity on Thursday for government, regulated entities and other stakeholders to implement anti-money laundering (AML) and counter-financing terrorism (CFT). Regulations. The guidance document states that as the financial transaction process becomes more digital, the goal of this intergovernmental organization is to address emerging security and transparency issues. The FATF has listed a series of issues on its website as “areas of interest”, requiring private stakeholders to provide feedback by email by November 29, 2019. It is worth noting that the guide specifically lists Distributed Book Accounting (DLT) as a tool to help grow digital identity networks. Many blockchain companies have turned their attention to this particular area, such as Civic. In its guidance, the FATF called on the authorities to “develop clear guidelines or regulations that allow AML/CFT-regulated entities to use reliable, risk-based, reliable, independent digital identification systems.” FATF recommends regulated institutions, such as encryption. Currency exchanges, “take a sensible approach to relying on digital identity systems to conduct due diligence on customers.”