The Global money-laundering watchdog, launched against cryptocurrencies

FRANKFURT/LONDON (Reuters) – Cryptocurrency companies will be subject to the rules for the prevention of the misuse of digital currencies such as bitcoin being used for money laundering, an international watchdog said on Friday, in the first of a 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 Financial Action Task Force (FATF), which is more than 30 years ago to tackle money-laundering, has told 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 by the FATF, which is a group of countries from the united states, China, and the authorities, including the European Commission, it 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.

States will be forced to register, guide and cryptocurrency-related businesses, such as exchanges and depositories, which will have to carry out more detailed checks on customers and report suspicious transactions, FATF said in a statement.

“This makes it possible for the emerging FinTech sector and to remain one step ahead of rogue regimes and sympathetic to illegal causes, and to look for ways to increase the transfer of resources without being detected,” the US treasury Secretary, Steven Mnuchin, told a COURT session in Florida, according to the explanatory memorandum, published on the U. S Treasury’s website.

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.

“This is a risk we are all facing globally,” FATF President, Marshall Billingslea told Reuters. “Countries need to move forward quickly. This is an urgent issue.”

Europol broke up a Spanish drug cartel, this year of laundering 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 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.

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

This week, Facebook prompted criticism from regulators and policy-makers in the plans are revealed for a cryptocurrency that 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’s initiative 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 said. “The challenge is to ask for something that is not the technical facility to do so.”

The rules could spark consolidation in the cryptocurrency sector, as a result of the high costs involved in the implementation of anti-money laundering controls for smaller companies it, said Megan Gordon, a partner at law firm Clifford Chance.

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

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