Financial Action Task Force to Introduce Binding Rules for Crypto Exchanges: Report
The intergovernmental anti-money laundering task force has begun discussions on introducing binding rules governing cryptocurrency exchanges, Reuters reported quoting a Japanese government official as the source.
Crypto exchanges are currently governed by non-binding guidelines, which leads to inconsistent enforcement among countries. The Financial Action Task Force (FATF) will consider whether existing rules on anti-money laundering (AML) measures and reporting suspicious trading activity are still appropriate, and if they can be applied to new exchanges.
The organization will also reportedly focus on how to work with countries that have banned cryptocurrency trading altogether.
The report follows the G20 meeting held in March, where global financial policymakers agreed on a July deadline for formal recommendations on cryptocurrency regulation. The economic leaders endorsed the FATF to introduce new standards that will curb the use of crypto-assets for money laundering and other financial crimes.
According to the Reuters report, the Japanese government is pushing for adoption of new binding rules by 2019 and hopes to gain the cooperation of the European and the US governments. Japan is set to chair the G20 summit in the year 2020.
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