International Task Force To Enforce Binding Rules For Crypto Exchanges

A source of the Japanese cryptocurrency watchdog, the Financial Services Agency (FSA), has declared that a set of new rules for cryptocurrency exchange operations may be imminent. This set of new rules may be obligatory instead of the usual guidelines proposed by international governments, coming from an international joint organization named the Financial Action Task Force, according to an article published by Reuters today.
The Financial Action Task Force (FATF), an organization established in 1989, could be the one to finally put binding, restrictive rules across international borders to exchanges. Having its headquarters in Paris, this joint task force was established with the prime objective of thwarting money laundering schemes, and then expanded their objectives to tackle terrorist financing.
But now, this organization could have an unintended influence in the cryptocurrency exchange world. According to the source, the organization members will meet to review their current set of guidelines about cryptocurrency exchanges and make them binding for all their members. The FATF is an organization directly created by the G-7, a group of the most developed countries in the world, and is formed by more than 37 countries, including the United States, Germany, Italy, and China.
The new set of binding rules could include a more intrusive set of rules for anti anonymity policy enforcing and anti-money laundering and anti-terrorist funding measures. Earlier this month a study found that 2 of every 3 cryptocurrency exchanges were not complying with ID policies, known commonly as KYC (Know Your Customer).
The organization will also be moving to the standardization of these measures and its compliance across international borders. Now, if an exchange does not want to comply with a set of rules of a nation, it just has to move its operations to a more permissive state, as happened with Binance, a Japanese exchange that moved its operations to Malta due to regulation tightening. But with this new set of rules, they won’t be able to operate outside regulatory compliance. These reviews will take place on June 24, and its outcome will be likely announced later.

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