🔆 Virtual Assets & Terror Financing 📍 Overview ✅ FATF flagged deficiencies in global standards on virtual assets (VAs) & virtual asset service providers (VASPs) related to money laundering and terror financing. 📍 Virtual Assets ✅ Digital value: Bitcoin, Ethereum, Litecoin, Dogecoin. (Note: Not government-issued currencies) 📍 VASPs ✅ Facilitate: • Exchange between virtual & fiat currencies • Transfers between virtual assets • Custody/administration of assets ✅ Examples: Crypto exchanges, wallet providers, ATM operators. 📍 Security Challenges ✅ Anonymity: VPNs & anonymity tools mask identities. ✅ Regulatory Arbitrage: Entities relocate to weak oversight jurisdictions. ✅ Crowdfunding: Extremists use social media & crowdfunding for global donations. 📍 India’s Response ✅ PMLA Inclusion (March 2023): VDASPs under AML/CFT norms. ✅ Mandatory FIU-IND Registration: For VASPs. ✅ FATF Evaluation: Enhanced monitoring for 2025 review. #security