Groupe D’Action Financiere
the Financial Action Task Force (originally, Groupe d’action financière) had adopted changes to cover firms involved in cryptocurrencies, such as exchanges, wallet providers and ICOs. Moreover, FATF is a body that sets standards for Anti Money Laundering (AML) and counter-terrorism financing rules. And it urged these firms involved in virtual currencies to be licensed and regulated.
The FATF said, “There is an urgent need for all countries to take coordinated action to prevent the use of virtual assets for crime and terrorism”
FATF said countries should make sure institutions and individuals involved in cryptos and ICOs are subject to AML and counter-terrorism financing regulations and report suspicious activities to FATF.
As reported by Wall Street Journal, the FATF issued guidance backing a risk-based approach towards firms involved in cryptocurrencies in 2015. FATF says it aims to help crypto institutions adopt AML & counter-terrorism financing to an innovative environment.
As part of a staged approach, the FATF will prepare updated guidance on a risk-based approach. This is to regulate virtual asset service providers, like their supervision and monitoring; and guidance for operational and law enforcement authorities on identifying and investigating illicit activity involving virtual assets,” said FATF.
This development by FATF comes after a discussion of the future of money laundering plans at the FATF Plenary meeting where 204 global jurisdictions gathered. During this meeting, the president of the organization has confirmed the new cryptocurrency regulations to come by June 2019.
The decisions on cryptocurrencies are due to the price of bitcoin. Moreover, it soars up to 1300 percent last year i.e.1BTC = $20,089.00 on December 17, 2017. Additionally, the prices have since collapsed to $6569 (at the time of the article) and as low as $6400. Extreme price volatility of cryptos is causing the countries to take contrast rules on them. However, some countries are even banning them.
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