Head of Global Financial Crimes Watchdog Urges G-7 Leaders to Implement Anti-Money Laundering Rules for Cryptocurrency.
The president of the global financial crimes watchdog has called on the advanced economies of the Group of Seven (G-7) to lead the way in fighting against illegal financial activities in the cryptocurrency space. This can be achieved by implementing the recommendations put forth by the Financial Action Task Force (FATF). The president conveyed this message in a letter sent on Thursday.
A message with a strong tone titled “Putting an end to the unregulated cryptocurrency space” was released before the upcoming meeting of G-7 leaders in Hiroshima, Japan, beginning on Friday.
The finance ministers and central bank governors of the group have already talked about regulating cryptocurrencies during a meeting last weekend. They are expected to reaffirm their commitment to implementing stricter global rules for cryptocurrencies during the summit.
The FATF has encouraged countries to adopt its “travel rule,” which is a measure that mandates crypto service providers to gather and exchange information about transactions exceeding a specific limit. This rule is intended to prevent money laundering and the funding of terrorism using digital assets.
According to Kumar, countries worldwide have made advancements in implementing the majority of the standards set by FATF. However, there has been limited progress in implementing the updated requirements related to crypto assets. He stated that approximately 73% of countries are either non-compliant or only partially compliant with FATF’s standards.
Kumar emphasized the need for countries to take immediate action to close down unregulated areas that enable criminals, terrorists, and rogue states to exploit cryptocurrencies.
Even though analysts believe that only a small percentage of crypto transactions (ranging from 0.1% to 15.4%) are illicit, the FATF suggests that these estimates might be too low.
Kumar emphasized the importance of G-7 countries leading the way in fully and effectively implementing FATF’s global standards, as it is essential for our collective success.
This information is for general knowledge only and should not be considered as advice for investing or making financial decisions.
