Here is the converted article in markdown format:

Mongolia’s VASPs: No Registration, No Services

============================

In a major crackdown on virtual asset service providers (VASPs), Mongolia has prohibited VASPs from registering and providing services to customers. According to Article 7.7 of the VASP Law, VASPs are only permitted to engage in activities specified in Article 6.1 of the law, excluding financial services unrelated to virtual assets.

International Cooperation

Mongolia has also made significant progress in international cooperation, with the introduction of a legal framework enabling foreign cooperation arrangements on money laundering and terrorism financing (ML/TF) for VASPs. The April 2022 FRC regulations require VASPs to collect originator and beneficiary information for virtual asset transactions exceeding MNT 3 million (approximately USD 975).

Conclusion

==========

Mongolia’s efforts have mitigated the risk of money laundering and terrorist financing in its virtual asset sector. While some minor deficiencies remain, including a need for further clarity on risk-based supervision and dissuasive monetary penalties, Mongolia has made significant progress in addressing technical compliance deficiencies.

As a result, Mongolia’s rating on Recommendation 15 has been revised to “largely compliant” (LC).