FATF: By mid-2023, only 30% of countries have implemented crypto regulation

The organization called for more active actions to avoid serious global consequences.

FATF: By mid-2023, only 30% of countries have implemented crypto regulation

Less than 30% of jurisdictions around the world have started regulating the crypto sector as of June 2023, said Raja Kumar, president of the International Financial Action Task Force on Money Laundering (FATF). In his opinion, such a low level of attention to the industry "requires a call to action." FATF recommendations are not mandatory, but jurisdictions that do not comply with them may face isolation due to a downgrade reflecting the transparency of the economy.

The FATF approved a roadmap to strengthen the implementation of crypto regulation standards in February last year. 12 months later, the group analyzed progress in various countries, and was assisted in compiling the report by analytical blockchain companies Chainalysis, Lukka Inc (formerly Coinfirm) and TRM Labs.

The new report notes that many countries have yet to fully comply with FATF requirements for virtual assets and related service providers to prevent their use for illicit financing. Failure to comply with these requirements "leaves significant loopholes around the world that criminals and terrorists use," the experts stressed.

For example, countries such as Argentina, Belgium, Brazil, Colombia, New Zealand, Turkey and Vietnam have not yet begun to apply registration or licensing procedures for crypto companies in practice.

Also, Australia, Iceland, Russia, Ukraine, South Africa and Vietnam have not yet begun to apply the "Travel Rule" to crypto companies, which obliges companies to exchange information about customers when making transfers to identify suspicious transactions.

The FATF emphasizes that virtual assets are inherently international and have no borders, and the inability to regulate them in one jurisdiction can have serious global consequences. The report mentions North Korean hackers who actively launder stolen cryptocurrencies to finance the creation of weapons of mass destruction. It is also noted that the creators of ransomware now almost always demand a ransom exclusively in cryptocurrencies.

Source: https://getblock.net/news/fatf-by-mid-2023-only-30-of-countries-have-implemented-crypto-regulation

Read More