15 countries, including the G7, will reportedly develop a system for tracking crypto transactions to prevent its illicit uses.
About 15 global jurisdictions, including the G7 countries, will reportedly develop a system for tracking crypto transactions to prevent illicit uses of cryptocurrencies.
The Financial Action Task Force (FATF) is planning to prepare detailed measures by 2020, according to a report by Tokyo-based newspaper Nikkei on Aug. 9.
The new system intends to collect and distribute personal data on individuals who conduct crypto transactions in order to prevent funds from being used for illegal activities such as money laundering and terrorism financing, the report notes.
While a number of global jurisdictions have not adopted regulatory frameworks in regard to the crypto space, the new international initiative is expected to contribute to the development of legal measures globally.
According to the report, a system of measures will be enforced after the policies are introduced in 2020. Once adopted, the private sector will manage the system, the report notes.
FATF and G7 support uniform crypto regulation
The FATF released guidance for a risk-based approach in regard to virtual assets and virtual asset service providers in June 2019. In the document, the authority described a number of regulatory recommendations that should be applied in its 37 member nations, including monitoring and reporting suspicious transactions by local crypto service providers.
As a result of the guidance, four major South Korean crypto exchanges, including Bithumb, Upbit, Coinone and Korbit reportedly faced tighter regulation when they renewed their banking accounts, Cointelegraph reported on July 29.
On July 18, G7 finance ministers voiced their concerns that cryptocurrencies such as Facebook’s stablecoin project Libra risk upsetting the global financial system if they are not regulated strictly.