Regulation
Financial watchdog warns that “criminals and terrorists” are exploiting loopholes in crypto regulations – DL News
- The Financial Action Task Force has identified countries with significant crypto activity.
- The global financial watchdog will help these countries implement crypto regulations.
- Getting countries to regulate crypto is an “urgent priority,” the FATF president said.
Countries must soon implement regulations for crypto asset service providers to prevent financial crime, the Financial Action Task Force concluded at its three-day plenary meeting in Paris this week.
Countries are not doing enough today to implement their recommendations on preventing cryptocurrency crime, he adds.
“This lack of regulation creates significant loopholes that criminals can exploit, and closing these loopholes is an urgent priority for the FATF,” Raja Kumar, FATF president from Singapore, told reporters at a news conference on Friday.
During the plenary, the FATF identified jurisdictions with the most significant crypto activity, based on transaction volume and number of users. They will benefit from the support of the FATF in the implementation of its recommendations.
These regions comprise 97% of the global crypto markets, Kumar said, adding that an overview of the measures these countries need to take should be released.
For cryptography, the FATF played a crucial role in developing the legislation. The international group recommends that crypto service providers register with national regulators or obtain a license, so that they can be monitored.
Another notable FATF policy is the “Travel Rule,” which requires that senders and recipients of crypto transfers be identified.
The FATF is pushing countries to implement crypto rules against money laundering “without further delay,” Kumar said. “We will also continue to work with countries to ensure they introduce regulation in this increasingly important area. »
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The FATF is made up of 39 members, including the world’s largest economies, and is responsible for developing policies to prevent money laundering and terrorist financing.
Its recommendations are being implemented into law in the European Union and the United Kingdom.
Inbar Preiss is a regulation correspondent based in Brussels. Contact her at inbar@dlnews.com.