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Money laundering watchdog to clamp down on cryptocurrencies

FRANKFURT/LONDON (Reuters) – Cryptocurrencies, such as bitcoin, are to be subject to the rules in order to prevent the misuse for purposes of money laundering, an international watchdog and will announce it on Friday, the first of the global regulatory effort to restrain the fast-growing sector.

FILE PHOTO: a Representation of the virtual currency, Bitcoin is standing up to the PC system board is shown in the image in figure 3 is in February 2018. REUTERS/dado Ruvic/Image/File Photo

The Paris-based Financial Action Task Force (FATF), a coalition of countries from the usa to China, and it will tell you the countries to strengthen the supervision of the cryptocurrency exchanges, in order to stop, digital coins will be used for the purpose of money laundering.

The move reflects the growing concern of the international agencies, the law enforcement agency that cryptocurrencies are to be used for the purpose of money laundering of the proceeds of crime.

Simon, Riondet, head of financial intelligence, Europol, the European police office, which coordinates cross-border investigations, told Reuters that he saw a rise in the use of cryptocurrencies in money laundering and criminal money.

Earlier this year, Europol broke up a Spanish drug cartel laundered money with the help of two of the crypto-Machines, the machines that have the problem cryptocurrencies for money.

Riondet said cryptocurrencies were being used to make money in the markets, as well as to break down the big criminal money transfers into smaller amounts that are more difficult to detect.

“We also have a lot of research on the dark web, in which the payments are made in cryptocurrencies, in bitcoin, and they have to switch to a more anonymous cryptocurrencies,” he said.

The so-called privacy is of coins such as Monero users to hide almost all the details of the transaction.

The move by the COURT comes in the midst of growing concerns over the sector defended by some as a means of shaking off government controls, but in view of the central bank as a threat to their status as guarantors of the financial system.

THE VIRTUAL COINS

Earlier this week, Facebook prompted criticism from regulators and policy makers, unveiled his plans for a new cryptocurrency, he was called to the Scales.

The three European central banks have argued that the supervision of the monitor in order to ensure that it does not pose a risk to the financial system, or it can be used for money laundering purposes. [L8N23S1ZH]

Germany’s central bank chief, Jens Weidmann, saying the virtual coins are linked to the official currency, also known as the stablecoins, are likely to undermine the banks, if they are to be used on a large scale.

The FATF is the first attempt to develop a global approach to the regulation of the $300 billion in the euro-currency market, the completion of the current hits, ranging from ” Japan’s move to license in exchange for a total ban in China.

Global Digital Finance, an industry body that allows for computer-related companies all over the world, he said, had welcomed the FATF rules. But Teana, Baker-Taylor, the executive director of the, said: the FATF recommendations, and to force the companies to cryptocurrency transactions, the details of senders and beneficiaries, and can be very difficult to comply with.

“Of course, We are going to meet,” Baker-Taylor told Reuters. “The challenge is to ask for something that is not the technical facility to do so.”

There is very little data available on the extent of money laundering with the use of cryptocurrencies. In view of the relatively small scale of the currency in the market, it is likely to be only a small fraction of the money money money.

Even though the digital coins will not be the full anonymity of the once believed – and their movement can be tracked on the blockchain technology, which underpins many of the gaps that exist in the identification of beneficial ownership.

Some of the cryptocurrency exchanges have been seen to have lax standards in the control of the users identity, or to verify the source of funds.

Reporting by John O’donnell and Tom Wilson; Editing by David Holmes

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