World Powers Move to Establish Cryptocurrency Safeguards
There is a new objective led by a partnership of 30 nations that have combined their efforts to put a system in place that targets suspicious cryptocurrency transactions to try to prevent financial fraud, money laundering and terrorism. This project would be upheld by the Financial Action Task Force (FATF) and would record and collect data on individuals who perform cryptocurrency transactions, according to the Nikkei Asian Review. The nations backing this project include the G7 nations, Australia and Singapore.
The FATF’s 30 nations have taken a pledge to regulate cryptocurrency transactions, including a call to monitor all crypto activity by reporting suspicious behavior, collecting and distributing crypto-user information to various platforms.
These regulations come in light of widespread belief that cryptocurrencies uncover a threat to global finance as we know it, especially with the release of Facebook’s Libra on the horizon. To respond, the G7 nations are calling for strict responses to suspicious behavior to prevent money laundering and terrorist endeavors. These regulations seek to bring a new era of stability to the crypto space that will relieve hesitation towards its adoption. Additionally, the FATF assigned Japan permission to be the frontrunner in an effort to create a global crypto payment system that also is committed to squashing money laundering efforts and making just crypto transactions.