Basel Warns Over Risk of 'Regulator Shopping' in Crypto Market
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Basel Institute on Governance warns there is a risk of "regulator shopping" in the cryptocurrency market as there are still jurisdictions with weak regulatory framework. According to a recently published "Basel AML Index 2021: 10th Public Edition," the risk is "exacerbated by the hyper-globalnature" of cryptocurrencies.

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"A lack of coordinated and concerted global action may therefore result in some jurisdictions becoming safe havens for illicit activity using virtual assets," the report says.

FATF Publishes Final Guidance for the Crypto Industry

While cryptocurrencies have positive characteristics, including the potential to improve financial inclusion, their borderless nature makes them a "tempting option for criminals to conceal proceeds of corruption," the institute added. The report also concludes that the FATF assessment of jurisdictions' compliance with Recommendation 15 remains the "most reliable source" of data on money laundering and terrorism financing risks relating to cryptocurrencies.

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