According to the head of the Financial Action Task Force (FATF), it is imperative that the G7 countries take the lead in “putting an end to the lawless crypto space”.
Cryptocurrencies need to be regulated
The Group of Seven (G7) should take the lead in implementing recommendations on countering money laundering, terrorism and proliferation financing, FATF President T. Raja Kumar urged before the Summit of Developed Economies in Hiroshima, Japan, this weekend.
Countries have made progress in adopting most FATF standards, but progress in implementing the updated crypto asset requirements has been “relatively poor,” Kumar noted in an article titled “Ending the Lawless Crypto Space ”.
FATF expanded its global anti-money laundering (AML) and anti-terrorist financing (CTF) standards to cryptocurrencies in 2019. However, the vast majority of countries (73%) are still non-compliant or only partially compliant.
“This unacceptable situation must be urgently addressed,” the head of the international organization stressed. His call comes after FATF announced in February this year that more than 200 jurisdictions had agreed on an action plan for their timely implementation.
Risks continue to increase
T. Raja Kumar pointed out that the risks posed by crypto assets continue to increase. He was referring to a recent report from FATF highlighting the significant increase in ransomware payments in recent years, which almost exclusively use cryptocurrencies. Crypto is also used to evade sanctions and raise funds for terrorist groups, he added, saying:
While risks have increased, cryptoassets continue to operate in a virtually lawless global environment.
“Countries need to take urgent action to close lawless spaces,” stressed the FATF president. He also admitted that crypto is “challenging to regulate” and noted that many governments lack experience or expertise in this area.
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