Formed in 1989, the Financial Action Task Force (FATF) provides governments with a guideline on how best to monitor and prevent financial aid from getting to terrorists among other financial misconducts. The group is headquartered in Paris. Now, to help streamline cryptocurrency regulations across the globe, the task force has indicated that it will start looking into regulations governing the cryptocurrency industry starting from June the 24th. Earlier on, the G20 had indicated that it will adapt to global virtual currency regulations set by FATF starting from this month.
According to finance magnates, the G20 indicated to the FATF that they will “commit to implement the FATF standards as they apply to crypto-assets, look forward to the FATF review of those standards, and call on the FATF to advance global implementation”
As part of its duty, the Financial Action Task Force keeps a record of countries that it deems not to contribute to the ‘greater good’. Currently, the list has 12 countries.
Interestingly, Japan was the first country to call for global cryptocurrency regulations during this year’s G20 meeting in Buenos Aires. It was strongly supported by China, France, and Germany. During this year’s G20 meeting, Mark Carney, BOE’s governor, noted that digital currencies need to be strongly regulated.
As it waits to chair the G20 meeting in 2020, the “Japanese government hopes to take a lead on the issue and is pushing for adoption of new binding rules by 2019 at the latest” reported Reuters.
The FATF will start its discussions by first examining the regulations which were proposed three years ago to see if they can be applied across the current cryptocurrency market.
Nations which have banned cryptocurrencies, like China, will also be discussed by the Financial Action Task Force.
Do you think the global virtual currency regulations set by FATF will help countries that have previously banned cryptocurrencies to lift the ban?
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