The rules: acts and regulators: key words
Read the word, say the meaning out loud, then open the card.
FATF (Financial Action Task Force)
An independent inter-governmental body whose Recommendations are recognised as the global standard against money laundering and terrorist financing. Source
Virtual asset
FATF's term for a digital representation of value that can be digitally traded or transferred and used for payment or investment. It does not include digital versions of fiat money or securities. Source
VASP (virtual asset service provider)
A person or company that, as a business and for others, exchanges, transfers or keeps virtual assets, or provides financial services for a token sale. Source
Risk-based approach
Understanding the money laundering risks you face and making your measures proportionate to them. Source
Travel Rule
The rule that a sending VASP must collect sender and receiver details for a crypto transfer and pass them to the receiving VASP. Source
Grey list
The name often used for FATF's list of jurisdictions under increased monitoring, which are working with FATF to fix strategic weaknesses. Source
MiCA
The EU's Markets in Crypto-Assets Regulation, Regulation (EU) 2023/1114. It sets uniform EU market rules for crypto-assets. Source
CASP (crypto-asset service provider)
Under MiCA, a firm whose business is providing crypto-asset services to clients professionally, and that is allowed to do so under Article 59. Source
Crypto-asset white paper
The disclosure document MiCA requires before most crypto-assets are offered to the public in the EU. No authority approves it in advance. Source
E-money token
Under MiCA, a crypto-asset that aims to keep a stable value by referencing the value of one official currency. Source
Investment contract (Howey test)
In US law, an investment of money in a common enterprise with an expectation of profits from the efforts of others. It is a security. Source
Money transmitter
In US federal rules, a business that accepts currency, funds or value that substitutes for currency from one person and transmits it to another location or person. Source
BitLicense
New York's licence for virtual currency business activity, under regulation 23 NYCRR Part 200 (issued June 2015). Source
CIMA
The Cayman Islands Monetary Authority, which registers and licenses virtual asset service providers under the VASP Act. Source
SDN List
OFAC's Specially Designated Nationals and Blocked Persons List. Since 2018 some entries include crypto addresses. Source
Strict liability
A legal standard under which a person can be held liable for a violation even without knowing, or having reason to know, about it. Source