To curtain a growing number of illicit activities stemming under the guise of the global cryptocurrency industry, trading firms in the future will be subjected to greater scrutiny and a more stringent set of rules.
The announcement comes from a global watchdog that has been closely surveying the crypto industry
The Financial Action Task Force (FATF), a unified regulatory entity representing a range of countries from America to China, put out a warning over the current condition of the crypto market and instructed nations to expand their regulatory vision for the digital currency market. This comes shortly on the heels of an announcement the organisation recently made regarding the same.
Bitcoin and other leading crypto coins have provided fuel for a thriving underworld market, with illegal activities such as money laundering have been occurring under the hood of the anonymity that digital currency provides.
The FAFT’s vision could raise a rare incursion on an industry that has been thriving in multiple countries without much restraint.
The entity’s statement also aligns with rising concerns among both national and international regulatory agencies over the dangers of cryptocurrencies and the illegal elements exploiting them safe from the watch of national authorities and banks.
The FATF said that under its current vision, nations would be obliged to record crypto focussed organisations and also monitor their transactions. Along with this, the agency also envisions a more expansive level of background check that could require divulging customers’ private information and their suspicious transactions.
Simon Riondet, who represents Europol, believes that the usage of cryptocurrency in the underworld by criminals and terrorists has seen a concerning spike.
Earlier in 2019, when Europol helped to dismantle a Spanish narcotics enterprise, it was discovered that cryptocurrencies were used to fuel in their operations.