FATF to Introduce New Program Regarding Cryptos and Related-Illegal Uses During U.S Presidency
The Financial Action Task Force (FATF) explicitly shared that it will be addressing cryptocurrencies and its associated crimes during its U.S Presidency. Based on a publicized report regarding such matters, the FATF will be focusing on three aspects of cryptocurrencies and will be analyzing the specs of the digital coins, along with how it might be “fitted”.
The post also revealed that FATF’s ongoing analysis, effective July 1st until June 2019, was delegated due to the result of the G20 meeting, which was held back in March of this year.
The first aspect that the FATF will be analyzing is the contribution of cryptocurrencies within fear-enforcing crimes like terrorism and what measures must be taken to prevent them altogether. In particular, the report wrote that,
“The FATF will prioritize work on preventing the financing of the proliferation of weapons of mass destruction; expand the current emphasis on combating terrorist financing […].”
Further betterments are said to be considered, including administering regulations on the digital assets.
The second aspect relates more on how FATF recognizes and define cryptocurrencies to ensure that businesses are not breaking any law in place. As per quote, a clarification is supposedly needed on,
“How the FATF definitions and recommendations concerning customer due diligence, money or value transfer services, wire transfers […] apply to virtual currency/crypto asset providers and related businesses.”
The final aspect will focus on the risk factors associated with cryptocurrencies. While for the longest time, Initial Coin Offerings (ICOs) were perceived as the main financial activities to potentially deceive investors, the FATF believes it is necessary peel through its several layers of the technology involved and to target every angle of cryptocurrencies possible. This will comprise the likes of
“virtual currency/crypto-asset payment products and services, including pre-paid cards linked to virtual currencies, Bitcoin ATMs, and Initial Coin Offerings (ICOs) […].”
As for the FATF’s current stance on cryptocurrencies, it appears that their emphasis is on the number of crimes taking place, as the report clearly stated that,
“the link between virtual currencies/crypto-assets and other predicate crimes appears to be growing.”
The end results will be finalized by FATF sometime in October 2018, as a re-evaluation of the program along with any shared opinions will be conducted and analyzed during a meeting in September.