The Financial Action Task Force (FATF) will present anti-laundering standards for the digital financial asset market in the very near future. No such standards exist for cryptocurrency as of now.
This way, FATF recognizes organizations that provide services related to digital assets, a full-fledged segment of the financial market. This means that operations with digital currencies will be removed from the shadow and the operations parties will get legal status.
It also implies that cryptocurrencies will need to be accounted for and a legal status within the framework of the legislation of each country has to follow. As a result, digital assets will be subject to local legislation when it comes to combating money laundering. The main requirements for companies involved will be presented based on strict adherence to the KYC procedure.
FATF is an intergovernmental organization with a mission to develop international standards combating the legalization of criminal proceeds. FATF is also engaged in assessing legislation and national standards in this area and their compliance with existing international standards. FATF participants are 36 leading countries of the world.
At a G20 conference, a statement was issued that countries undertake to implement FATF standards for crypto assets and also call on FATF to promote their global dissemination. After the call of G20, FATF announced its working plan-report on the currency and crypto-exchanges markets. Digital assets were chosen as one of the three priorities for the FATF work. At the same time, the department singled out the main risks of the digital currency industry:
- Significantly increased number of reports on suspicious transactions. The increase in the number of such messages ranges from 230% (Spain) to 3500% (Malaysia) per year;
- High criminological risks;
- Use of cryptocurrency in the context of illegal drug trafficking;
- Growth of hidden mining;
- Use of anonymous cryptocurrencies in cyber-attacks and spread of fraud using ICO and bitcoin-ATMs.
That is why FATF began to closely engage in the digital money industry. The Office also called on international standards-setting bodies to continue monitoring crypto assets and their risks.
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