FATF plans to finalize global crypto AML standards by October, according to the president of the agency, Marshall Billingslea. It is also expected that the FATF will discuss which existing standards should be adapted to cryptocurrencies.
21 September, AtoZ Markets – The Financial Action Task Force (FATF) reportedly stated that it is getting closer to the final stage of establishment process of a global set of anti-money laundering (AML) standards for cryptocurrencies.
FATF to Finalize Global Crypto AML Standards by October
The FATF is an international organization that was established back in 1989 as the initiative of G7 in attempt to develop and create policies and guidelines to combat global money laundering. The scope of the agency’s activities has then also expanded to fight terrorism financing. As of the moment, the FATF includes 35 members and 2 regional organizations.
The president of FATF, Marshall Billingslea, reportedly stated that he anticipates the conclusion of a set of standards that will fill in the “gaps” in the global cryptocurrency AML guidelines at the FATF plenary in the upcoming month.
It is also expected that at that time, the FATF will discuss which existing standards should be adapted to cryptocurrencies. The agency is also planning to review the assessment methods of how nations implement those standards. Billingslea also added that it is very important for the development of standards that can be applied on the global scale.
He has explained that current AML standards and guidelines for cryptos are “very much a patchwork quilt or spotty process,” which is “creating significant vulnerabilities for both national and international financial systems”. Billingslea has further noted that in spite of the risks that are related to this kind of assets, cryptocurrency as an asset class still presents “a great opportunity.”
Financial Stability Board Crypto Framework
G20 has initially urged FATF to issue AML standards related to cryptocurrency market earlier this March. The organization was aiming at a wider approach for global regulations on the issue.
Earlier this July, the Financial Stability Board has published a framework for monitoring cryptocurrency assets. This organization is responsible for analyzing and developing recommendations for G20 concerning global financial systems.
The FSB’s cryptocurrency monitoring framework outlined a number of metrics that it will use to oversee the developing cryptocurrency markets. According to the organization, the framework “should help to identify and mitigate risks to consumer and investor protection, market integrity, and potentially to financial stability.”
The FSB has published this standardized network along with a report. It has been submitted to the ministers of G20 countries and to the central bank governors. As per the document, the overseeing efforts will mostly focus on cryptocurrency assets’ price volatility and the wider use of cryptocurrencies for payments and institutional exposure.
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