In order to counter illicit financial flows through crypto-assets (virtual currencies), G7 countries must take the lead in implementing the recommendations of the Financial Action Task Force (FATF). said in a May 18 letter.
Entitled “Putting an end to the lawless crypto space,” the strong message was announced ahead of the G7 summit, which starts May 19 in Hiroshima.
G7 finance ministers and central bank governors have already discussed crypto regulation at their meeting last weekend, and at the summit, world leaders will reiterate their support for tougher global crypto rules.
In order to curb money laundering and terrorist financing using crypto-assets, the FATF has asked each country to implement a “travel rule” that obliges crypto-asset service providers to collect and share information on transactions above a certain threshold. The request is being discussed.
“Countries around the world are making progress in implementing regulations. However, progress in implementing the latest FATF requirements for crypto-assets has been relatively slow,” said FATF Chairman Raja Kumar, with 73% of countries added that it was “non-compliant or only partially compliant” with FATF standards.
“States need to take urgent action to close the lawless areas where criminals, terrorists and rogue states can take advantage of cryptocurrencies,” Kumar said.
Analysts estimate that around 0.1% to 15.4% of cryptocurrency transactions are illegal, but the FATF says this number may be too low.
The G7’s leadership “fully and effectively implementing the FATF’s global standards is critical to our collective success,” Kumar said.
｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Original: G-7 Must Take Charge in Ending ‘Lawless’ Crypto Space, FATF Chief Says
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