Money-Laundering Task Force Wants Binding Rules for Crypto Exchanges

The Financial Action Task Force reportedly aims to develop compulsory rules for the world's cryptocurrency exchanges.

Jun 12, 2018 at 1:25 p.m. UTC
Updated Sep 13, 2021 at 8:02 a.m. UTC

The Financial Action Task Force (FATF), an intergovernmental organization that develops policies to tackle money laundering, is planning to develop binding rules for the world's cryptocurrency exchanges, a report indicates.

According to a Reuters report on Tuesday, an unnamed Japanese government official said that the group aims to hold talks around the subject starting on June 24.

The move was apparently initiated by calls for a globally coordinated policy on cryptocurrencies from the world's economic leaders at the G20 meeting in March.

While current non-binding guidelines suggest some money-laundering controls for the industry – including that exchanges should be registered, suspicious activity reported and customers verified – it is currently at different nations' discretion as to whether and how they are implemented.

The FATF talks, according to the report, will also look at the effectiveness of the existing rules, their application to new exchanges and how any new system would work with nations that have banned crypto trading.

Japan – which passed a law in April 2017 recognizing cryptocurrencies as a legal method of payment and also set up a registration system for cryptocurrency exchanges – will take over leadership of the G20 in 2020. Reuters cites the official as saying the country's government intends to push for binding rules for crypto exchanges by 2019 or earlier if possible.

At the G20 meeting in March, member nations present agreed that issues with cryptocurrencies need to be examined, but that more information was required before any regulations could be proposed. As a result a deadline was set in July for recommendations on what data is required.

Further, in a report to the G20 the same month, another intergovernmental body, the Organization for Economic Co-operation and Development (OECD), called for cooperation on studying the tax consequences of cryptocurrencies.

Bitcoin and fiat currencies image via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
Capital Flight or the Seeds of the Next Cycle?

With money leaving stablecoins and the industry as a whole, is there any good news?

With money leaving stablecoins and the industry as a whole, is there any good news?

2
Bitcoin Needed to Get Its Face Ripped Off

Now is the perfect time to learn all there is to learn about the crypto world.

Now is the perfect time to learn all there is to learn about the crypto world.

3
Market Wrap: Bitcoin Dips, Stocks Plummet as Volatility Spikes

Traders continue to hedge against further price declines.

Traders continue to hedge against further price declines.

4
Bitcoin lucha por mantener el soporte en $27K-$30K

BTC está en una zona de soporte positiva, aunque el impulso a largo plazo sigue siendo débil.

BTC está en una zona de soporte positiva, aunque el impulso a largo plazo sigue siendo débil.