For some readers the news is positive, other crypto users consider excessive regulation more likely to end the anonymity of Bitcoin and other currencies. In any case, the FATF wants to fight money laundering with new rules.
Money laundering inspectors want to create binding rules
FATF stands for the Financial Action Task Force. This is an internationally active supervisory authority, whose key tasks include the implementation of anti-money laundering laws. Just in time for the weekend, the institution announced that it intends to develop its own rules by June 2019.
These rule will enable monitoring of crypto currencies such as Bitcoin or Dash. The Authority strongly believes that both governments and companies, such as crypto exchanges that allow digital trading, should be both regulated and licensed.
Fighting criminal activity in the crypto space
This way the implementation of money laundering laws will be practicable in the future. Otherwise, the growth market will not only be threatened by the increase in money laundering activities. Cryptocurrencies could also be used for finance global terrorism. The FATF sees a need for equal regulation for companies that generally offer services related to digital currencies or even plan their own ICOs.
Last but not least, ICOs were a topic of discussion for the US Congress. Global rules are urgently needed, according to the authority. The plan is to introduce a blacklist. This will allow restrictions on market access for states that do not implement the regulations and thus open the door to financial crime.
Marshall Billingslea, the current FATF President, announced that clear standards should be formulated by next summer, which should then be implemented and controlled by states worldwide. The Task Force is not the first international institution to announce such rules.
The constant development of the crypto space has created problems for authorities for years. Many rules have basically been repeated for their introduction, precisely because the market is undergoing constant change.