A system for monitoring Cryptocurrencies is set to be announced in 2020 and deployed a few years down the line. This comes after over 15 nations formed a cooperative task force that aims to prevent Cryptocurrency Financial crime.
Money laundering and other Crypto-based criminal activities are becoming rampant and the traditional Financial Crimes fighting agencies are being outwitted by criminals.
Hence, there is the need for a dedicated system for the prevention of Cryptocurrency Financial Crimes and this is the reason why the 15 nations are pledging to liaise and develop a system for monitoring Crypto transactions.
Introducing The 15 Members
According to a report from the Nikkei-a Japanese media company- the 15 members include G7 members such as the US, Canada, Italy, France, Japan, Germany, and the UK. Additionally, other members include Australia and Singapore.
Further, the project has the backing of the Financial Action Task Force (FATF) that comprises more than 30 nations. This, therefore, means that the upcoming system already has the support of a host of powerful nations that can easily craft a new framework that guides Crypto-based financial transactions.
The System Will prevent Financial Crime
One of the most common financial crimes that governments have been fighting for decades is money laundering. Hence, the members alongside the FATF are developing a framework for developing a system for collecting and sharing data concerning Crypto transactions.
This system will be sharing transactions at a personal level to ensure that that the system captures real-time data to enable the relevant authorities to effectively identify dubious transactions.
According to Japan-based Asia Nikkei news, the platform is set to be managed by a third party from the private sector once it is deployed a few years after the official announcement that is slated for 2020.
The FATF Has Raised Concerns Of Illicit Financial Activities Through Crypto
The Paris-based FATF in June presented a case to the G20 Leaders’ Summit detailing the role of Digital Tokens on its mandate of preventing financing of terrorism and money laundering. The organization recommended that countries should collaborate to fight the vice and this is exactly what the 15 nations are doing.
Some of the particulars of the FATF recommendations that its 30 members are supposed to adhere to include sharing of data on Crypto transactions, licensing or registration of Crypto trading platforms, adherence to KYC standards, etc.
AML Rules Are Increasingly Focusing On Crypto Monitoring
In the modern era where the crypto economy has surged beyond the $300 billion mark, many countries are enacting stringent policies to govern the use of Cryptos in an effort o combat the growing menace.
For example, Hospodářské Noviny, a Czech-based newspaper recently reported that the country’s Financial Regulators require local Cryptocurrency-related businesses to register with them or risk a fine of at least $500,000.
Although the unilateral approach to fighting Cryptocurrency Financial Crimes could be unsuccessful as Cryptos have a global portfolio, the FATF-backed plan to develop a system for monitoring Crypto transactions in 2020 and beyond could help countries that are keen on fighting the vice to get real-time market data.