Taipei, Taiwan –Countries that have not implemented anti-money laundering guidelines for cryptocurrencies could be added to a “grey list” including Syria and Haiti under a global watchdog plan to increase scrutiny of crypto assets. I have.
The Financial Action Task Force (FATF) conducts annual checks to ensure countries are enforcing anti-money laundering and terrorist financing rules against cryptocurrency providers operating within their jurisdictions. two sources familiar with the matter told Al Jazeera.
The use of annual reviews, instead of peer evaluations carried out on a five-year cycle, would reduce the time for non-compliant countries to enact standards set by intergovernmental bodies and would allow them to be placed on a “greylist” of eligible countries. increased risk of being added. Increased surveillance, according to a source who spoke on condition of anonymity.
One of the sources said that non-compliance with the rules does not automatically result in greylisting, but it does affect the overall country rating, and some jurisdictions meet the listing threshold. He said he could get closer.
The plan for the annual check has been seen within the crypto industry as governments ban crypto service providers outright and pressure banks to stop serving platforms to avoid listing on the FATF. This raises concerns that
In response, crypto industry leaders announced at the G20 summit in Bali this month a series of measures aimed at minimizing the potential impact on cryptocurrency users and exchanges. I am preparing to announce my proposal.
Ron Tucker, co-founder of the International Association of Digital Asset Exchanges (IDAXA), a representative body for the cryptocurrency industry, told Al, “This will prevent countries from using banks on cryptocurrency exchanges. , there is a real risk of impacting end users, which is serious.” Jazeera.
“At stake is financial inclusion. will really set back the
The FATF, established by the G7 in 1989, did not respond to Al Jazeera’s request for comment.
Although the FATF is non-binding and relies on governments to implement its recommendations, countries that do not comply risk severe reputational damage, with the risk of disrupting investment flows and access to the global financial system. facing
In 2019, the FATF extended Recommendation 16, which requires states to collect identifying information about recipients and beneficiaries of wire transfers, to virtual assets.
Ahead of the G20 Summit on November 15-16IDAXA is preparing to submit to a conference a proposed policy framework aimed at minimizing disruption to crypto users and preventing exchanges from being suddenly frozen from the global financial system. .
IDAXA members will meet with FATF and financial authorities at V20, a two-day dialogue on virtual assets on the sidelines of the G20 summit. Sources said IDAXA will aim to ratify the proposed framework on his second day of the summit.
Bali is the first time the V20 has been endorsed as an official event of the G20 and will be held within the ‘red zone’ of the summit where world leaders gather.
Industry leaders say bringing the event within the G20, a forum of 20 major economies, including the European Union, reflects the growing importance of cryptocurrencies and blockchain technology in the international financial system. increase.
Event organizers will give policymakers an opportunity to communicate their objectives to the crypto industry before IDAXA seeks regulatory assistance to ratify the proposed framework at its plenary session on November 15. said he would give.
While the details of IDAXA’s proposal have yet to be confirmed, Tucker said the industry group would improve on elements outlined at the previous V20 in Osaka in 2019 to help countries better adhere to FATF guidelines. He said his goal was to make it enforceable.
Mr Tucker said the responsibility lies with governments.
“Industry has played a role in the FATF, and now it is up to governments to implement FATF guidelines in their regulations,” said Tucker. “Greylisting threats should be a call to action they perceive.”
“This V20 could be our last chance to turn things around,” he added. “If we get regulation now and restore investor confidence, we can see cryptocurrencies springing up soon, otherwise we may have a long winter ahead.”