The Financial Action Task Force (FATF), whose advice is heeded by more than 200 countries, will meet in October to discuss ways to create a stronger global framework for the regulation of cryptocurrencies.
- As such, the organization will work to develop an international framework for authorities to coordinate and share information about virtual asset service providers (VASPs).
- As defined by FATF, a VASP is an open-ended term for crypto exchanges and peer-to-peer services as well as wallet providers and custodians. It can also include any business that trades or transacts in digital assets.
- This would make the global regulation of cryptocurrencies and stablecoins, in particular, more effective, FATF said.
- The end goal would be the framework forming the base of a global network of supervisors for the crypto industry.
- While details are currently sparse, an FATF spokesperson confirmed the watchdog would convene this autumn to discuss how to improve international cooperation.
- FATF is also planning to make available a list of red flags indicating possible criminal activity to regulators at the same time.
- Siân Jones, a senior partner at XReg Consulting, told CoinDesk the framework would help regulators get up to the same speed worldwide.
- The report gives an overview of stablecoins, cryptocurrencies that attempt to offer price stability by being pegged to a reserve currency such as the U.S. dollar. FATF said it will be providing guidance for regulators at some future point.
UPDATE (July 7, 16:55 UTC): This article has been updated to include comment from Siân Jones.
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.