FATF to Release Rules Focused on the Crypto Sphere in 2019
The global watchdog against money laundering, which is based in Paris, aims at eliminating the usage of crypto assets in laundering money, and the financing of terrorism by creating guidelines that are in accordance with the standards of AML/CFT.
The Financial Action Task Force has declared a plan to impose the new rules and regulations by summer, 2019 as was reported by Reuters.
The FATF said that this week, authorities all over the globe should accredit or establish rules on specific aspects of the digital currency industry as an attempt to deter the usage of crypto in fraud and money laundering for terrorism.
These freshly-imposed rules will be put into operation when it comes to crypto asset exchange companies, the operators of Initial Coin Offerings, in addition to corporations that supply securely encrypted wallets to members. While the FATF aims at consistency throughout the field, it is said that they will assist in supervising the regulations in each region’s crypto-oversight organizations. Every country will have a say in the choice of the AML/CFT category in which they will list their existing cryptocurrency suppliers.
The Rules Will Be Issued by June
It is still a few months until the declaration of the precise features of the rules is made. The FATF head, Mr. Marshall Billingslea, said that they will announce further directives on how they should be implemented, by June. He also stated that the task force will constantly observe and reevaluate the new regulations. This may effect some countries and impose certain restrictions on their access to the international financial markets and systems.
Two countries that have faced constriction on the rules for their crypto exchanges are Japan and South Korea. Since demands for regulations in the industry are ever-increasing, some countries in Europe; such as France, Malta, and Switzerland, are expected to start regulating their ICO projects.
It was an ideal dream to create a standard system of guidelines across the crypto ecosystem. However, it is starting to be fulfilled to become reality, one step at a time. The execution of AML rules in the cryptosphere is considered to be a constructive step for the field which should boost it and create a trustworthy atmosphere that will attract new investors. The primary focus in the crypto community is safety and security, which will potentially lead to more mainstream adoption.