The Financial Action Task Force (Groupe d’action financière in French) is planning to introduce new rules related to cryptocurrency exchanges this month. The organization is expected to start its digital currency discussions by June 24. Reuters cited a Japanese government official close to the matter, noting that the agency is making earnest efforts to create a crypto policy before the July deadline.
G20 Decision Could Influence Related Agencies
The G20 group of countries has already committed to following whatever policies the FATF comes up with regarding digital currencies. In March, the group issued a statement reiterating its commitment to make relevant policies for the young industry. It also talked about the importance of digital assets, which could bring significant risks to the existing antimoney laundering framework.
The statement read: “We commit to implement the FATF standards as they apply to crypto-assets, look forward to the FATF review of those standards, and call on the FATF to advance global implementation.”
The organization currently has 37 member countries and eight associated groups, including the Financial Action Task Force of Latin America and the Asia/Pacific Group on Money Laundering. Any decision taken by the organization could drastically change the global cryptocurrency market.
Japan, the crypto-friendly nation that has legalized Bitcoin, was an early mover and called on the G20 to discuss this subject. China, France, and Germany supported its proposal.
Time to Break Old Rules
The group discussed digital assets in 2015 and released a 48-page nonbinding guidance as well. This document did not refer to cryptocurrencies specifically, which allowed member states to define their own rules. While China cracked down on its entire cryptocurrency industry, Germany went ahead and recognized Bitcoin for tax and trading purposes.
The guidance recommends states to register exchanges, verify customer identities and report suspicious activities. The FATF plans to reconsider the old rules and find if they are relevant for the rapidly growing market. The intergovernmental organization also aims to find appropriate solutions to work with new exchanges and countries that have already banned trading.
Reports suggest that Japan wants to lead the group into adopting new regulations by 2019, right before it chairs the organization in 2020.