FATF holding meetings this week to determine G20 policy on cryptocurrencies

19 Jun, 2019
by David Borman
Regulation
FATF holding meetings this week to determine G20 policy on cryptocurrencies

Today CryptoGlobe is reporting that the Financial Action Task Force (FATF), a G7 initiative to develop anti-money laundering and other financial crime policies, is meeting this week in Florida. Though many topics will be discussed, one of the key issues listed is "Interpretive note and guidance on virtual assets." It is expected new regulations will be announced after the meetings that will apply to all G20 nations.

It is believed that the new documentation on digital assets will be published on Friday, after the discussions wrap up. In a similar vein, it has been reported that FATF president Marshall Billingslea, who is also the U.S. Assistant Secretary of the Treasury for Terrorist Financing, will be holding a press conference that same day to discuss the conclusions.

New regulations will likely include the need for all crypto exchanges and wallet providers to be fully registered and licensed, as well as be subject to regular monitoring by regulators. Many major exchanges are already in compliance with this concept to the highest degree that current regulatory frameworks allow, but it is still likely there will be some growing pains here.

Another anticipated rule will be that any "virtual asset service providers (VASPs)" will maintain a database of all information on users and their transfers, which will be available to the proper authorities upon request.

Obviously, not everyone is keen on this development, and Jeff Horowitz, chief compliance officer at Coinbase, is quoted in the article explaining how such regulation will only drive criminals underground:

"Applying bank regulations to this industry could drive more people to conduct person-to-person transactions, which would result in less transparency for law enforcement."

Ultimately these developments are not fully unexpected, though it is still unclear how they will be received across the crypto-space. More information will likely be availabloe Friday, so stick right here with Chepicap for all updates!

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