The Financial Action Task Force (FATF) said that it is coming closer to the establishment of a global set of anti-money laundering (AML) standards for cryptocurrencies, the Financial Times stated on September 19.
FATF is an international organization established on the initiative of G7 to develop policies and standards for fighting money laundering in 1989. The agency’s activities expanded further to combat terrorism financing. FATF currently includes 35 member jurisdictions and 2 regional organizations.
Agency president Marshall Billingslea said that he is expected to coordinate a series of standards, which in October FATF will close the “gap” in global AML standards in full-time.
At that time, FATF will clearly discuss that existing standards should be adapted for digital currencies, as well as modifying the evaluation methods of the implementing those standards. Billingslea also highlighted the importance of developing standards which can be implemented in a similar manner.
According to Billingslea, the governance for the current AML standard and cryptocurrencies is “too much patchwork quilt or spotty process”, which is causing significant vulnerability to both “national and international financial systems”. Billingslea noted that despite the risks related to such property, digital currency presents a “great opportunity” as a property class.
In June, reported that FATF was planning to develop binding rules for the crypto exchanges after that month. New rules will be the upgrades for non-binding proposals approved by FATF in June 2015, considering that the current guidelines on AML measures and the reporting of suspicious business activity are still appropriate, and if applicable to new exchanges can be done.
At the beginning of this month, Belgian Think-Tank Bruegel also called for more investigation on cryptocurrencies integrating the law and distributing them to investors. Bruegel noted that the virtual nature of cryptocurrencies limits the development of the rules, which states that a laminate approach for crypto regulation leaves the opportunity of regulatory mediation.