• The president of the global financial crimes watchdog, T. Raja Kumar, has urged G-7 leaders to “effectively” implement FATF’s crypto anti-money laundering norms ahead of their meeting this weekend.
• The Group of Seven (G-7) advanced economies must take the lead in implementing recommendations by the Financial Action Task Force (FATF) to combat illicit financial flows through crypto.
• Countries need to take urgent action to shut down lawless spaces, which allow criminals, terrorists and rogue states to use crypto assets.

G-7 Must Take Charge in Ending ‘Lawless’ Crypto Space

The Financial Action Task Force (FATF), a global financial crimes watchdog, is urging G-7 countries to take charge and effectively implement its cryptocurrency anti-money laundering regulations ahead of their meeting this weekend. In a letter titled “An end to the lawless crypto space”, FATF President T. Raja Kumar highlighted that 73% of countries are still non-compliant or only partially compliant with FATF’s standards. He called on G-7 leaders for urgent action towards shutting down lawless spaces that enable criminals, terrorists and rogue states to use cryptocurrencies for nefarious purposes.

What Regulations Does FATF Recommend?

The FATF recommends implementation of its “travel rule” which requires cryptocurrency service providers to collect and share information on transactions above a certain threshold. This is designed as an effort towards curbing money laundering and financing terrorism via digital assets. Analysts estimate that 0.1 – 15.4% of cryptocurrency transactions may be unlawful although the FATF believes these figures may be too low due to lack of compliance with standards around the world..

Why Is It Important For G-7 To Lead By Example?

Kumar noted that G-7 countries taking the lead in fully and effectively implementing FATFs global standards is crucial for collective success against unregulated finance activities using cryptos. He said: “Around the globe, countries have made progress in implementing most of the standards; however, progress on implementing FATFs updated requirements on crypto assets has been relatively poor.”

Recent Developments Around Crypto Regulation

At a meeting last weekedn, finance ministers and central bank governors from G-7 nations discussed tightening regulations around cryptocurrencies prior to their summit in Hiroshima this weekend where they are set reiterate their support for tougher rules globally regarding cryptocurrencies.

Conclusion

Cryptocurrency regulation has become an increasingly pressing matter as more people turn towards digital assets for transactions worldwide due to its many advantages including lower transaction fees compared with traditional banking systems as well as faster transfer times across borders with no geographical limitations.. Hence it becomes imperative for governments around the world especially those belonging to advanced economies such as those within G-7 groupings like Japan, U.S., Canada etc.,to come up with effective policies aimed at curbing illegal activity without stifling innovation or growth potential that lies within digital asset economies .