Money laundering for Cryptocurrencies is a situation that the Financial Action Task Force (FATF) publicly announced is moving forward in the establishment of a global set of anti-money laundering (AML) standards for the cryptocurrencies.
The news was announced through a post published by The Financial Times on September 19.
The fight against money laundering
FATF is an institution that operates since 1989 as part of a G7 group project whose purpose is to develop policies and protocols to combat money laundering. The commitment of the agency is so great that later they expanded the scope of their activities to fight against the financing of terrorism in thirty-five jurisdictions and two regional organizations.
According to reports, Marshall Billingslea, president of the organization, clarified that he hopes that the coordination of a series of standards will close the margin of action of the cybercriminals while reducing the gaps in the global AML protocols in a plenary session. the entity.
At the time, the FATF will deliberately discuss what existing standards should be adapted to digital currencies, and review the evaluation methods of how countries implement these standards. Billingslea also pointed out the importance of developing schemes that can be applied uniformly.
According to the president, the current AML schemes and regimes for cryptocurrencies are “largely a patchwork quilt or an irregular process,” which is “creating significant vulnerabilities for national and international financial systems.” Billingslea, said that despite the risks associated with this type of assets, the digital currency as a class of assets presents “a great opportunity”.
In June, it became known that TAFT was planning to start developing binding rules for encryption exchanges later that month. The new rules would be an update of the non-binding resolutions that were approved by the TAFT in June 2015, considering whether the existing guidelines on AML measures and on the notification of suspicious business activities are still appropriate, and whether they can be applied to new exchanges.
Earlier this month, Belgian think tank Bruegel also called for unified legislation on cryptocurrencies and greater scrutiny on how they distributed to investors. Bruegel noted that the virtual nature of cryptocurrencies limits the development of regulations, and states that a fragmented approach to crypto regulation leaves an opportunity for regulatory arbitrage.
Part of the problem for which nations do not end up accepting cryptocurrencies is the ease they have for money laundering and financing of terrorism, which unfortunately is a consequence of decentralization since it is simpler to do this type of crime to through a tool that is not supervised by anything or anyone.
Efforts by regulators to avoid this play a very important role in the global adoption of cryptocurrencies because if the goal is achieved, people will have more confidence in the ecosystem.
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