FATF Makes Progress On Cryptocurrency Regulation
14 November 2018 - 5:12AM
ADVFN Crypto NewsWire
Bitcoin Global News (BGN)
November 13, 2018 -- ADVFN Crypto NewsWire -- The overall
transition of global financial systems to digital formats has been
gaining speed since the advent of the internet. With the
introduction of cryptocurrencies, an entirely new system for
digital finances has opened up and provided a myriad of unforeseen
benefits. This new form of currency simply doesn’t fit into the
existing financial legal frameworks for individuals or
businesses.
The deeper advantages of blockchain
technology are now clearly evident. Private companies globally have
introduced novel ways to incorporate the decentralized,
peer-to-peer method for establishing data networks. However, these
new currency networks have also created new pathways for illegal
monetary transactions.
Coming Full
Circle
As the exponential rise of value of
the cryptocurrency market has now retreated and begun to become
more steady, governments around the world are taking the time to
implement the legal frameworks that will allow the benefits of
cryptocurrencies to not be overshadowed by the negative.
This past summer proved to be
monumental for this process. Several global conferences brought
together lawmakers who had finally had the time to learn about and
understand cryptocurrencies. In July The Financial Stability Board
delivered a report to G20 Finance Ministers and Central Bank
Governors outlining their approach to crypto-assets.
“Crypto-assets raise a host of
issues around consumer and investor protection, as well as their
use to shield illicit activity and for money laundering and
terrorist financing. At the same time, the technologies underlying
them have the potential to improve the efficiency and inclusiveness
of both the financial system and the economy.” - FSB Chair and
Governor of The Bank of England Mark Carney
Anti Money Laundering
Focus
FATF is responsible for developing
the operational measures to prevent money laundering in Europe and
around the world. The group is composed of 35 countries. Naturally,
cryptocurrencies are at the forefront of their research over the
past several years. They released a “risk-based-approach” guideline
for cryptocurrencies back in 2015, but have now put regulations in
place that are in union with much of what was highlighted by
government conventions over the summer.
Their Anti-Money Laundering (AML)
and Countering Financing of Terrorism (CFT) have been amended to
include exchanges, wallet providers, and providers of financial
services for ICO. A new system of licensing, registering, and
monitoring these entities to ensure their compliance with existing
regulations. They are similar to those of South Korea, where
anonymous trading has been banned and stricter guidelines for
exchanges are being implemented.
By: BGN Editorial Staff
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