G20 to establish crypto AML regulation

April 8, 2019, | AtoZ MarketsG20 member countries will discuss international crypto AML regulation during the upcoming meeting on the 8th and 9th of June in Fukuoka, Japan.

Crypto usage in the money laundering remains global

In recent years, the crypto industry has certainly gained an increased level of standards of competition and development. However, the problem of using digital assets in illegal activities continues to exist.

Just two months ago, a British newspaper, the Daily Telegraph published a report alleging that it had seen documents proving that the executives of the digital bank Revolut had deliberately switched off an automated system designed to prevent suspicious transactions for a three-month period in 2018.

A month later, the founder and CEO of Revolut Nik Storonsky publicly denied allegations of a money laundering-related breach and negligence by the company. He stated that there had been some misleading information in the media relating to the company’s compliance function. According to him, Revolut had opted to revert to its previous AML systems after an upgrade failed to produce adequate security.

Crypto AML regulation to guarantee consumer protection

An obstacle of the proper money laundering prevention is that regulators are not fast enough in licensing crypto space participants. Such behavior has a negative outcome for the consumer protection as certain investors tend to trust projects with a catchy name and promises of fast profits. A study conducted by a New York-based international newspaper last December showed that hundreds of cryptocurrency projects’ whitepapers had signs of fraudulent activity and promises of incredible income.

As a result, the crypto company’s investors might unwillingly become supporters of illegal activity, that involves cryptocurrency. Decentralized and anonymous nature makes it a prime target for the advanced money launderers.

G20 members meet in Fukuoka to discuss cryptocurrency future 

On June 8 and 9 more than a year after the previous meeting with the same topic G20 member countries will organize another discussion, dedicated to crypto AML regulation. The meeting will take place in Fukuoka, Japan.

According to the Japanese media, the G20 meeting will include the organization’s managers and the finance ministers of every country member. The event will focus on creating a framework for combating money laundering and terrorist financing.

Crypto AML regulation will include striker identification rules

According to the report, it is expected that countries will reach an agreement on new rules at this meeting. The report states that the main objective is anonymity. Namely, it is reported that the group seeks to establish a stricter identification of individuals conducting operations in crypto mode at the time of the transaction, in order to ensure transparency of the flow of assets.

Regulating cryptocurrency taxation on the G20 discussion table

As Atoz Markets reported back in December, the G20 countries have already called for taxing cryptocurrency, as well as regulating them, of which anti-money laundering claims come on top. At that time, it was reported that the member countries, which then gathered in Argentina, would consider this issue at a meeting in 2019 “when Japan becomes the president of the summit”.

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