FATF Requests Over Thirty Countries To Standardize Cryptocurrency Institutions Like Commercial Banks
Over Thirty Countries To Standardize Cryptocurrency Institutions As Much As Commercial Banks
An inter-governmental organization called The Financial Action Task Force has recently concluded its set prerequisites to be used in the management, control, and observation of all financial institutions offering cryptocurrency solutions in its member countries. The organization has advised that all the countries it governs, make deliberate efforts to supervise and control cryptocurrency firms the exact same way they would do other financial institutions like commercial banks.
Regulation Of Cryptocurrency Institutions In FATF Countries
On the 22nd of February, during a meeting of the Financial Action Task Force (FATF) in France, the setting of principles and standards for cryptocurrency institutions were deliberated and it was decided that the FATF’s regulation of these firms would be a bit more strictly done. This supervision, regulation and management, will be a good way to eliminate the use of cryptocurrencies for criminal activity.
More About The FATF
The Financial Action Task Force also known as the Groupe d’action Financière (GAFI), proposed by the G7, was established in 1989 specifically for the purpose of setting regulations and implementing actions including modes of operation to fight financial crimes including money laundering. A few years later, its mandate was expanded a little more, to include terrorism financing and any other financial activity that might compromise the honor and reliability of all the countries it governs.
The FATF currently has 38 member jurisdictions including Argentina, Australia, Austria, Belgium, Brazil, Canada, China, Denmark, The European Commission, Finland, France, Germany, Greece, The Gulf Cooperation Council, – including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates – Hong Kong, Iceland, India, Ireland, Israel, Italy, Japan, South Korea, the Kingdom of the Netherlands, – including Netherlands, Aruba, Curacao and Sint Maarten – Luxembourg, Malaysia, Mexico, New Zealand, Norway, Portugal, the Russian Federation, Singapore, South Africa, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States of America.
Supervisory Prerequisites Set By The FATF For Its Member Countries
During the meeting, it was revealed that the FATF had reached a conclusion regarding the “detailed implementation requirements for effective regulation and supervision/monitoring of virtual asset services providers.” However, the requirements may not exactly be set in stone until June. The requirements mandated the FATF member countries to “consider virtual assets as ‘property’, ‘proceeds’, ‘funds’, ‘funds or other assets,’ or other ‘corresponding value.’”
“Countries should apply the relevant measures under the FATF recommendations to virtual assets and virtual asset service providers.” These providers should also be required by its member countries, to “identify, assess, and take effective action to mitigate their money laundering and terrorist financing risks.” Providers must also compulsorily “be required to be licensed or registered.”
The FATF, however, explained that:
“A country need not impose a separate licensing or registration system with respect to natural or legal persons already licensed or registered as financial institutions.”