Virtual asset service providers are set to face the same regulations aimed at preventing money laundering and terrorist financing as traditional financial institutions, according to the Financial Action Task Force (FATF). The watchdog requires that crypto service providers implement the same preventive measures as other financial institutions. These measures include customer due diligence, record keeping, reporting of suspicious transactions, and adherence to the travel rule. The travel rule obliges crypto service providers to collect and share transaction information above a certain threshold to ensure compliance with regulatory requirements. Businesses that fail to comply risk being penalized or even having their licenses revoked. The move is aimed at improving the integrity and transparency of the financial system while protecting the interests of consumers. As highlighted in the FATF guidelines, the ultimate goal is to identify and mitigate the risks associated with virtual assets and to promote responsible innovation in the crypto space.