14 Jun 2018
Financial Action Task Force (FATF) will meet with the Gulf Cooperation Council and the European Commission in a bid to discuss global legally binding crypto exchange regulations.
14 June, AtoZ Markets – A multi-national agency entitled the Financial Action Task Force (FATF) is responsible for combating global financial criminal activity. This agency is expected to discuss the development and introduction of the legally binding rules for overseeing cryptocurrency exchanges later this month.
Online reports noted that FATF will meet with the Gulf Cooperation Council and the European Commission in a bid to establish legally binding regulations for cryptocurrency exchanges globally.
The move for the development of these rules appears after a call from the financial policymakers from G20 nations. The existing rules are non-binding, which makes enforcement among the countries difficult.
As per the current guidelines, cryptocurrency exchanges are required to be registered or licensed. They also need to verify the identity of their customers in a bid to prevent money laundering. However, since the rules are non-binding, more than half of the crypto exchanges do not meet these requirements.
One of the government officials has noted that the discussions are set to begin on the 24th of June. Reportedly, during the talks, officials are planning to take a closer look at the existing rules and determine whether or not they are appropriate in the current cryptocurrency market conditions. The authorities are also set to discuss the aspect of countries, where cryptocurrency trading is banned.
Japan comes as one of the most developed countries with already established crypto-friendly regulations. The country is now putting efforts to provide the clarity in regards to the remaining and urgent issues. Just earlier this month, the Financial Services Agency (FSA), has outlined five points for regulation of cryptocurrency exchanges.
In addition, the FSA has officially rejected the application for a license from one of the cryptocurrency exchanges. The announcement has outlined that the regulator decided to reject FSHO’s application following its suspension orders in March and April.
The rejection order has also stated that FSA’s decision was made based on the fact that the exchange did not make any progress during the past three-month suspension period. The regulator believes that the exchange did not improve its internal operations.
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