By According to a recent report by Tokyo-based newspaper Nikkei on August 9. The G7 countries and 15 other nations will develop a technology that tracks crypto transactions and keep a check on unlawful uses of cryptocurrencies, the report states. This system will be devised and developed under the supervision of the Financial Action Task Force (FATF), which is an international body comprising of 30 plus countries and economies combined. The Road map, for now, is to fashion a detailed plan and draw various measures and introduce the policies by 2020, and have the system up and running a few years from yonder.
FATF has been taking various measures
Japan has been the first in this race where it successfully established a legal framework for cryptocurrency exchanges. On the other hand, this is not the case for a majority of other nations. Virtual currencies have been entirely unregulated in some places and this comes as a challenge when we try to develop a common international framework for this budding industry. It is believed that this new initiative will play a major part in the regulation of cryptocurrencies globally.
Previously, the FATF issued a guidance that spun around the various risks involving cryptocurrencies and how to address them in June 2019. The report highlighted various regulatory recommendations that should be applied in the 37 member nations, and this includes monitoring and reporting any illicit or suspicious crypto transactions by local crypto service providers. This resulted in major exchanges like Bithumb, Coinone, Upbit and Korbit to face strict regulations in the South Korea province.
Last year we saw G20 countries sign a joint declaration in Buenos Aires, promising to regulate cryptocurrency & Combat their use for money laundering and acts of terrorism in line with the Financial Action Task Force standards. Also coming from the G20 declaration was the fact that “other responses” would be put under consideration as needed, adding that the G20 countries would continue to monitor the current global economic ecosystem which as we know continues on a rapid path to digitization
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