FATF Eyes Discussions For Binding Crypto Guidelines

Jun 14, 2018 at 20:03

Paris-based international watchdog Financial Action Task Force (FATF) is set to commence talks later this month to form binding rules that will govern cryptocurrency exchanges globally.

In a report by Reuters, a Japanese official privy to the matter said the move was sparked by calls from various financial policymakers from leading economies to form regulations to monitor crypto activities.

Current guidelines which date back June 2015 require exchanges to secure licenses or registration and to verify identities of users to prevent money laundering and other illegal activities.

The report said the FATF discussions will start on June 24 and will study if non-binding guidelines currently in place are still appropriate.

The discussions will also zero in on how to improve these guidelines to be applied to new crypto exchanges and explore how to work with countries that have banned cryptocurrency trading, the official who requested anonymity said.

The official added that the Japanese government is looking to issue and push for the new and binding guidelines by 2019 for consistency in regulation worldwide, at the latest.

According to the official, Japan is positive it can also get the support of the U.S. and European governments.

Paris-based FATF is a 37-nation group set up by the G7 industrial powers to combat money laundering.