The European Commission along with 35 countries have asked the FATF (Financial Action Task Force) to revise its standards regarding cryptocurrencies. The FATF is responsible for setting global AML (anti-money laundering) countermeasures and it promised to present its revised AML policies for cryptocurrencies at the upcoming G20 finance ministers’ meeting.
The Financial Action Task Force meeting took place in Paris between Feb. 18 and 23. The representatives of 35 countries and also two organizations asked the global body to understand the money laundering risks that are related to cryptocurrencies, according to Yonhap.
As its website describes, the FATF established in 1989 and it is an inter-governmental organization that aims to implement effective measures and set standards in order to deal with terrorist financing, money laundering, and other similar threats.
At the moment, the FATF includes 2 regional organizations and 35 member jurisdictions. Member countries include Germany, Sweden, China, United Kingdom, France, Russia, India, Turkey, Japan, the United States, South Africa and South Korea. The two organizations are the Gulf Co-operation Council and the European Commission.
Member countries worry about the services that let users hide their identity.
During the meeting last week, member countries expressed their concerns about the increase of money laundering risks through the anonymity that electronic wallets provide. They were worried about the mixing services that hide their owners’ identity.
Although we are still not able to know what the new measures will be and how they will affect the market, we can take a look at South Korea’s example. The country has banned anonymous cryptocurrency trading and has introduced the real-name system that went into effect on Jan. 30. Further, the country’s FIU (Financial Intelligence Unit) published AML guidelines for financial institutions because they have to properly verify their clients, as Yonhap detailed.
When are the new measures going to be announced?
As the Hankyoreh reported, the FATF considered the need to revise the digital currency guideline created in June 2015 along with its own global standards. They agreed to report their response to the G20 meeting of Finance Ministers in March.