The Financial Action Task Force, also known by its French name, Groupe d’action financière, is an intergovernmental organization founded in 1989. Their primary goal is to combat money laundering, terrorist financing, and other related threats to the integrity of the international financial system.
Currently, there are 37 members countries of FATF. The G20 is an International Forum of the leading economies of the world which primarily entertains financial issues on its platform. The Financial Stability Board (FSB) of G20 has suggested that; while cryptocurrencies do not pose any severe economic instability issues that this point, strict laws must be imposed for consumer and investor protection, anti-money laundering (AML) and countering the financing of terrorism (CFT).
Reportedly, the new recommendations “will be formally adopted as part of the FATF Standards in June 2019.”
New FATF Recommendations
The new recommendations suggest that the Governments in different countries should consider virtual assets as “property,” “proceeds,” “funds,” “funds or other assets,” or other “corresponding value.” This reiterates the proposition of imposing long-term and the short-term asset valuation to be applicable on cryptocurrencies.
VASPs – ‘virtual assets and virtual asset service providers’ are private or public entities that deal in crypto-assets. The new recommendations plan to impose strict regulations on such firms. A decision to impose mandatory licensing requirements and inspection of the owners and managers of the VASP is essential to avoid dubious personnel from benefitting from the industry.
Moreover, the VASPs or Exchanges, or wallet providers will now be required to exchange the details of the beneficiary and the initiator with each other and with the authorities on request. The new recommendations noted that,
Countries should ensure that originating VASPs obtain and hold required and accurate originator information and required beneficiary information on virtual asset transfers, submit the above information to beneficiary VASPs and counterparts (if any), and make it available on request to appropriate authorities.
Nevertheless, it also mentioned that it not “necessary to directly attach the information with a virtual asset transfer.” However, the countries must ensure that such information system is established which also deters fraudulent transactions, taking freezing action and prohibiting transactions with designated persons and entities.
The recommendations would involve cooperation between the Governments and Exchanges. However, there are many open source wallets and programs that could be adversely affected by the move.
Do you think that the new regulations will affect the cryptocurrency markets? Please share your views with us.
- Will McDonald’s Accept Dogecoin Following Elon Musk’s Challenge?
- Bitcoin’s Positive Correlation With The Stock Market Index Records A Mild Increase
- Breaking: Elon Musk Bets McDonalds to Accept Dogecoin (DOGE) As Payment
- T-series And Hefty Entertainment join forces with Hungama to delve into Web 3.0 to create NFTs
- Ripple Objects To SECs Request To Buy More Time Following Recent Court Ruling
- OpenSea’s Meteoric Rise May Trigger An Ethereum Crash, Here’s Why
- Breaking: JPMorgan Closes Uniswap (UNI) Founder’s Accounts
- UBS Warns Of Apocalyptic Crypto Winter And The Cryptocurrency Prices Are Poised To Crash
- SOL Tanks 6% As Solana Faces Another 48 Hour Outage, Boom and Bust Moment for Solana?
- Fantom (FTM) Surpasses Avalanche and Solana as DeFi TVL Crosses $12 Billion
- Solana Creeps Higher, Looks To Revisit January Highs AT $177.0
- Ethereum Price Analysis: Fibonacci Retracement level 0.618 Triggers Recovery Rally In ETH Coin
- BTC Price Analysis: Death Crossover Brings Nightmares On Satoshi Street; Is This A Buying Opportunity?
- Bitcoin Death Cross Haunting Investors, Will BTC Make or Break?
- DOGE Price Analysis: Highly Influential Bearish Trendline Undermines Bullish Attempts; Buy, Sell Or Hold?
- Terra Price Analysis: Will LUNA Price Bounce Back at 0.382 Fibonacci Retracement?
- SAND Price Analysis: Sandbox Price Losses 50% Retracement Level, Good Time to Buy?
- LINK Price Analysis: Chainlink price reclaims 200-day EMA, Emerging trendline Suggests More Upward Price Movement
- Harmony Price Analysis: Rising Parallel Pattern Could Lead 30% Growth In $ONE Price
- Ripple Price Analysis: XRP Bears Struggle To Breach $0.7 Support Zone, Is A Reversal Next Move?