Anti Money-Laundering Task Force Looks To Binding Rules For Crypto Exchanges

AML FATF Crypto

The intergovernmental organization known as the Financial Action Task Force (FATF) is planning to create a set of binding rules for the world’s crypto exchanges, a Reuters report suggests.

According to the report, a still unnamed Japanese government official revealed that the group will hold talks about this subject starting on the 24th of June.

This is apparently in response to calls for a globally coordinated policy on cryptocurrencies from global economy leaders at the last G20 meeting in March of this year.

While there are currently non-binding guidelines in place for the industry, it is still up to each specific nation’s discretion on what rules are implemented, and how they are implemented.

The scheduled talks will also look at the effectiveness of the FATF’s existing rules, their application to new exchanges and the challenge of how a new system can be made to work with nations that have completely banned crypto trading within their borders.

Reuters cites the unnamed official as saying that Japan – which had passed a law in April 2017 recognizing cryptocurrencies as legal tender and also creating a registration system for exchanges-intends to push for globally binding rules for crypto exchanges by 2019 or even earlier. Japan takes over the chairmanship of the G20 in 2020.

At the last G20 meeting, member nations present at the meeting agreed that cryptocurrencies need to be examined, but that more information was required before further regulations could be constructed and proposed. A July deadline was set for recommendations on what data is required.

Furthermore, in a report delivered to the G20 that same month, the Organization for Economic Co-operation and Development (OECD) also called for cooperation on studying the possible tax consequences of cryptocurrencies.

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