Update (14:00 UTC, Aug. 12, 2019): The Financial Action Task Force has contacted CoinDesk by email and stated that it is not involved in developing a cryptocurrency monitoring system as reported by Nikkei Asian Review. We have added the task force's comment below.
Fifteen nations are planning to set up a system to monitor cryptocurrency transactions, a Friday report indicates.
According to Nikkei Asian Review, the aim is to stem the movement of funds for illicit purposes, such as money laundering and funding of terrorism, by collecting and sharing transaction data, as well as the personal information of cryptocurrency users.
FATF, the international money-laundering watchdog, is claimed in the report to be managing the project, which is slated to be finalized by next year and live within several years. The 15 nations, including the G7 members, Australia and Singapore, would develop the system, says Nikkei.
However, FATF told CoinDesk after publication of this article that it is not, in fact, involved in the monitoring project. It stated via email:
The G7 group of nations warned in July that cryptocurrencies like Facebook’s Libra are a threat to global financial stability, and that that rules of the “highest” standards are needed to minimize the use of digital currencies in money laundering and funding terrorism.
FATF was also reported last month to have given its permission for Japan to lead the creation of an international cryptocurrency payments network similar to banking network SWIFT, also aimed to stem money laundering.
Bitcoin image via Shutterstock
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.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.