International Watchdog Asks for Stricter Control on Crypto Transactions

The Financial Action Task Force is an international watchdog that oversees money laundering and terror financing and devises measures to curb these menaces. Its AML/CFT regime has stringent measures which have to be followed by all international states. The watchdog stated on Thursday that countries must tighten controls on cryptocurrency transactions to fulfill global requirements for transparency. FATF reported that countries have made “little progress” in implementing the “travel rule,” which it had called for universal implementation in 2015.

Similar to the regulations that control conventional banks, the law requires regulators to make sure that cryptocurrency firms confirm the names of the people involved in transactions. The standard is thought of as a strategy to lessen the possibility that cryptocurrencies would be used to finance terrorism or money laundering.

International Watchdog Asks for Stricter Control on Crypto Transactions

The FATF examined 98 governments in March of this year and discovered that just 29 had established legislation governing travel rules, and only 11 had begun to implement it. The vacuum in the regulations, according to the research, made crypto assets and crypto businesses “vulnerable to misuse, and underlines the urgent need for jurisdictions to ramp up implementation and enforcement.”

Since most cryptocurrencies are unregulated, their values might change drastically. As much as two-thirds of the market value of the sector had been lost in recent months due to the value’s sharp decline.

Cryptocurrency enthusiasts advocate against regulation, viewing cryptocurrencies and the technology that supports them as the cornerstone of a decentralized alternative to the established banking system. However, as crypto companies push into the mainstream with high-profile TV advertising and celebrity endorsements, national authorities are moving more and more in the direction of stricter regulations and consumer protection.

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