Financial Action Task Force Wants Binding Rules for Crypto Exchanges
The Financial Action Task Force which develops policies which deal with money laundering is planning to develop rules which will be binding to all world’s crypto exchanges. One official from Japan said that the FATF group was planning to hold talks around the money laundering subject starting on June 24th.
The latest move is said to have been started by calls for well-coordinated policies in the cryptocurrency market which were raised during the economic leader at the G20 meeting held on March. Current guidelines require all exchanges to be registered and all suspicious activities reported as well as verifying the identity of customers. This current rules, however, have been implemented at the national level and there are no international rules guiding the cryptocurrency sector.
The Financial Action Task Force is said to be looking at the existing rules and how they apply to new exchanges and how the new rules can work in countries which have already burned cryptocurrencies like China. Japan which already recognizes cryptocurrencies as a legal means of payment is said to be preparing to take over leadership of the G20 summit in 2020. The Japanese government is planning to push for permanent rules for cryptocurrency exchanges in 2019 or even earlier if it will be possible.
During the March G20 meeting, all the nations agreed that matters related to cryptocurrencies needed to be examined. The member said that more information however needed to be to be collected before proposing on the best regulations for the growing sector. This led to a deadline of July to be set as the date on which all the required data will have been submitted.
Another intergovernmental body called the Organization for Economic Co-Operation and Development (OECD) also tabled a report to the G20 calling for cooperation in studying the effects of cryptocurrencies on tax. A task force was however formed to deal with all the matters related to cryptocurrencies.