The Financial Action Task Force (FATF), a Paris-based intergovernmental group that oversees government policy on illegal finance, is calling for more stringent cryptocurrency regulations to help thwart money laundering and other criminal activity, according to a Thursday (Oct. 28) report from the Wall Street Journal.
The international body asked its several dozen members — including the U.S., China and most of Europe — to require crypto firms to undertake various safeguards, including verifying the identities of customers and informing regulators of suspicious activity, according to the report.
To become law, national regulators in each country would need to enact the task force’s recommendations.
The FATF is the latest organization calling for more stringent crypto regulation.
Earlier this month, Bank of England Deputy Governor Sir Jon Cunliffe called for immediate regulation of cryptocurrencies, according to PYMNTS.
See also: Bank of England’s Governor Says Cryptocurrencies Need Regulation
In the U.S., too, crypto regulations are being considered. President Biden is eyeing cryptocurrency laws that would help prevent ransomware scams and cybercrimes, according to PYMNTS. An executive order is one of the ways to enforce guidelines, but it is not clear if that will be the president’s approach.
Read more: Crypto Regulation, and Possible Executive Order, Show Top Down Approach
On the other hand, some experts say regulations are already in place to provide financial oversight, and that there isn’t a need to enact guidelines specific to cryptocurrencies.
QED Investors Partner and former U.S. Department of the Treasury Assistant Secretary Amias Gerety told PYMNTS’ Karen Webster recently that current regulations will suffice. The theory is that since all financial services are already highly regulated, oversight is instead needed where funds are being moved to ensure safeguards are in place.
Related: Regulating Crypto: Is It Different – Or Is It the Same?
According to a panel discussion with PYMNTS last week, a group of payment executives, attorneys, investors and academics agreed that corporates and FinTechs must weigh in on what is needed from regulators in terms of crypto guidelines. The group agreed that there must be coordination at the state, federal and international levels of crypto policy and enforcement.
You may enjoy: Proactive Approach to Regulation Best Outcome for Crypto Industry, Pros Tell PYMNTS
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More