In the summer of 2019, the FATF Intergovernmental Organization Against Money Laundering will start publishing international regulations on cryptocurrency.
FATF representatives report that these standards will be adopted as mandatory financial regulations around the world. Their dominance also extends to cryptocurrency exchanges, wallets, and ICO.
During this week FATF held a meeting with representatives of more than 200 jurisdictions where the discussion included issues related to the regulation of the cryptocurrency market.
The FATF President Marshall Billingslea from the United States said that his department will be publishing the main regulatory principles and additional instructions to standards starting from June next year.
In a statement released on Friday, October 19, FATF stressed that "there is an urgent need for all countries to take coordinated action to prevent the use of virtual assets for crime and terrorism".
FATF brought new definitions of “virtual assets” and “virtual asset service providers” hoping that it will help regulators to “ensure that virtual asset service providers are subject to AML/CFT regulations”. Anti Money laundering organization called on governments to license or register “virtual assets” and their service providers, so they will become subject to monitoring to ensure compliance.
Explaining what exactly FATF means under the term “virtual asset” the organization writes the following:
“The FATF uses the term “virtual asset” to refer to digital representations of value that can be digitally traded or transferred and can be used for payment or investment purposes, including digital representations of value that function as a medium of exchange, a unit of account, and/or a store of value”.
FATF participants are 37 leading countries of the world. The current version of the guidance was released by the body in 2015. After the new recommendations have been issued all the countries participants will have to follow the guidance within the framework of their legislation. According to the document, countries-members may also “decide to prohibit virtual assets based on their own assessment of risk”, and they are free to do so.
The Financial Action Task Force (FATF) will begin publishing international regulations on cryptocurrency as early as June 2019.
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