Fifteen (15) countries including G7 and Financial Action Task Force (FATF) members are working on a new crypto transaction tracking system, as per reports from Japanese media.
Cryptocurrencies have grown from being called a Ponzi scheme to being labeled the payment system of the future.
Cryptocurrencies are now being used in many countries across various continents including Brazil, the US, the UK, Russia, China, and many others. Now several different entities are planning on introducing a network for monitoring cryptocurrency transactions.
The need for crypto transaction tracking system
Aimed at stomping crypto use for illegal reasons several nations along with the G7 nations are planning on developing a structure for monitoring digital trades. The FATF is also formulating to arrange extensive procedures by 2020 according to local sources in Tokyo.
The planned network will be collecting data on transactions conducted by individuals as well as their personal data. This data will then be distributed to the authorities in order to monitor the individual and see whether the person conducts any illegal activities such as money laundering or terror financing.
Although many countries still do not have a regulatory framework for cryptocurrency, the recent international initiative is expected to contribute to crypto regulation worldwide. As per sources, the system will be enforced after the policies are introduced in 2020, subsequently, the system will be administered by the private sector.
The FATF also released guiding manuals for beginner’s approach towards digital currencies and their respective service providers. The document consisted of the regulatory recommendations all of its thirty-seven (37) member countries should apply including the monitoring of suspicious transactions across local crypto service providers.
Due to these initiatives, many crypto exchanges across these countries faced tighter regulation. These included Bithumb, Upbit, and Korbit when they renewed their banking accounts.
Recently, on July 18 G7 ministers raised concerns about certain cryptocurrencies like Libra that threaten to upset the global financial system.