Cryptocurrency AML regulations to be out in June: Money-laundering watchdog
Crypto has long been used to skirt financial regulations and transfer money through illicit loopholes causing government and international agencies to draw up anti-money laundering regulations to keep up. The money laundering global watchdog has stepped up and has announced that it will curate the first set of supervisory rules for cryptocurrencies by June, as reported by Reuters.
The decision was taken by the Paris-based Financial Action Task Force (FATF) on 19 October. The FATF said that the jurisdictions would be allowed to regulate virtual currencies and wallets holding the cryptos and to prevent the use of these assets in high crimes like money laundering and terrorism financing.
ICOs have also come under the radar by the FATF, with the regulatory body stating that companies that offer tokenization services are also subject to scrutiny.
Cryptos are not currently globally regulated, they are a country-specific issue. Some countries have stamped down severely on cryptocurrencies, others have created cautionary regulations to protect investors, and some countries have allowed crypto companies to operate with minimal oversight.
Marshall Billingslea, the President of the FATF, stated that the implementation of these rules by individual countries will be periodically reviewed by the financial watchdog. If any country does not act upon the rules of the FATF, they will be placed on a FATF blacklist which will prohibit access to the global financial system.
Billingslea said, “By June, we will issue additional instructions on the standards and how we expect them to be enforced.”
Several professionals who work in anti-money laundering activities welcomed the move by the regulatory body, however, they argued that the regulations were a start but the crux of the issue was the ability of cryptocurrency owners to remain anonymous and prevent traceability.
China and South Korea have come out against the rise of virtual currencies with the former commencing a crackdown since September 2017 and the latter banning ICOs since late last year. European countries have set up advisory committees on the rise of cryptocurrencies and have established supervisory bodies to monitor companies that provide ICOs.
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