FATF demanded that “without delay” to regulate the work of kryptomere

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FATF demanded that “without delay” to regulate the work of kryptomere

Group of development of financial measures against money laundering (FATF) has demanded from member countries to issue licenses or otherwise regulate the activities of kryptomere operating in their jurisdictions. This writes the Crypto Slate.

The FATF stated “urgent need” to prevent the use of cryptocurrencies in money laundering and illegal payments for services. In an official statement the organization said:

Virtual assets and related services is able to stimulate financial innovation, improve efficiency and enhance access to financial services, but they also give criminals and terrorists new opportunities to launder profits and to Finance their operations. The FATF is actively oversees the risk in this area. In 2015, the organization issued guidance addressed to the leaders of the cryptocurrency sector, with tips on how to avoid risks. All participating countries should immediately undertake a coordinated effort to prevent the use of virtual assets by criminals and terrorists.

Later in the statement, the organization said that the services of wallets and organizers ICO— projects must fulfill the updated requirements and recommendations included in the new set of rules of the FATF.

The organization holds clear the difference between digital and Fiat currencies, however, the basis of new rules of the cryptocurrency sector will be based on existing laws on combating money laundering.

Jurisdictions who feel the need to ban the use of digital assets, will be allowed to do it if they deem the risk of money laundering excessive. As long as there is effective ban, the regulation of digital assets is optional. Accordingly, exchanges, and services of purses and ICO projects must be regulated in all jurisdictions where their work is allowed.

The President of the FATF, Marshall Billingsley said in an interview with Reuters that his Agency by June 2019 “will release additional guidance on standards and measures of their implementation”.

According to Billingsley, the FATF intends to monitor how countries are made to comply with the new regulations, and States, unable to enforce them, will fall into the black list.

Group of development of financial measures to combat money laundering, an intergovernmental organization that develops global standards in combating money laundering and financing of terrorism. Members of FATF are 36 countries, including Russia.

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