Nearly 15 Governments to Cooperate in Creating a Worldwide Crypto Monitoring System To Fight Money Laundering

Governments of about 15 countries seek to establish a new system of cooperation that would enable them to collect and share with each other personal information on people who transact in cryptocurrencies, Nikkei Asian Review reports.

Among the countries that will develop the new system include the Group of 7 (G7) members, Australia and Singapore. The system is to be designed by the Financial Action Task Force (FATF), an international organization that consists of 37 member jurisdictions and 2 regional organizations.

According to the report, the plan is for the detailed measures to be drawn up by 2020, and a few years later, the system should be in operation, which would then be managed by the private sector.

The goal of this effort is to prevent the laundering of money, which is then used for a host of illegal purposes, including funding terrorist organizations.

Given that many countries do not have a regulatory framework for crypto, and that a number of them are working on establishing clear rules for cryptocurrencies, it is generally very difficult to establish a global set of rules or a system by which most, if not all, countries will be guided, but this effort might bring all of them closer and faster to their legal goals.

In June, the FATF agreed to implement their previous recommendations that would force governments to tighten oversight of the crypto business.

In other related news, just recently the Financial Conduct Authority (FCA), a financial regulatory body in the United Kingdom, issued the Final Guidance on crypto assets, while the G7 attendees at a summit of ministers and central bankers expressed concern about Facebook’s Libra and crypto-related matters and promised action.

The crypto industry has witnessed numerous regulatory announcements in the recent past, especially after the announcement of Facebook’s Libra project and the crypto enthusiasts can expect a lot more to come.