Financial Action Task Force Urges Governments to Tighten Rules on Crypto
Intergovernmental anti-money-laundering organization Financial Action Task Force (FATF) has urged countries to tighten rules on cryptocurrencies. The organization published its new guidelines on virtual asset regulation on its official website on Friday, June 21.
FATF is an intergovernmental body headquartered in France that was set up in 1989 to combat money laundering. It has now suggested its member countries to revise their crypto-related legislation and prevent cryptocurrencies from being used in money laundering.
The watchdog proposed to introduce an obligatory procedure for registration and supervision of crypto exchanges and custody storage services. If this gets introduced, crypto businesses will have to conduct detailed checks of their customers and report any suspicious transactions to the authorities.
According to Reuters, this is the first attempt to enforce control over cryptocurrency transactions on an international level. Until now, crypto regulations were only introduced at the level of individual states.
The publishing of FATF’s new guidelines took place shortly after social media company Facebook announced its own cryptocurrency Libra. Its blockchain is set to be operated by nodes represented by 27 major companies, such as Visa, Uber, MasterCard, eBay, PayPal, and others, and is expected to launch in the first half of 2020.
FATF first tackled the issue of crypto regulation in 2015, publishing detailed guidelines designed to prevent money laundering and terrorist financing via virtual assets. The latest update to these policies was introduced in March this year.