{"id":12034,"date":"2023-05-18T18:48:07","date_gmt":"2023-05-18T18:48:07","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=12034"},"modified":"2023-05-18T18:48:17","modified_gmt":"2023-05-18T18:48:17","slug":"fatf-head-urges-g7-to-bring-order-to-lawless-crypto-space","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=12034","title":{"rendered":"FATF head urges G7 to bring order to \u2018lawless crypto space\u2019"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p>The Financial Action Task Force (FATF) head T Raja Kumar said G7 nations need to take a more proactive approach to regulate the \u201clawless crypto space\u201d as it continues to allow illicit financial transactions to occur around the world.<\/p>\n<p>Kumar made the comments in a letter published ahead of the G7\u2019s 2023 Summit in Hiroshima slated for May 19, where the group will discuss various agenda items for the year, including the regulation of cryptocurrencies and the overall industry.<\/p>\n<h2>Illicit digital financial flows<\/h2>\n<p>The FATF chief said the watchdog is working on \u201cmultiple fronts\u201d to help countries combat \u201cdigital financial flows\u201d that are \u201cfueling crime and terrorism.\u201d<\/p>\n<p>However, the eradication of these flows requires \u201cconcerted global action\u201d to ensure that no \u201csafe haven\u201d can exist in the financial system of the world for such transactions, according to Kumar.<\/p>\n<p>The FATF has updated its Recommendations \u2014 the global standards on combatting money laundering, terrorism financing and proliferation financing \u2014 to include crypto-assets and related financial activity.<\/p>\n<p>However, Kumar said countries have made \u201crelatively poor\u201d progress in implementing these new standards as part of the Recommendations.<\/p>\n<p>As of 2019, the regulator surmised that only 27% of countries were compliant with the updated standards that include crypto, while the remaining majority of 73% are completely or partially non-compliant and have yet to begin work on supervising the crypto industry.<\/p>\n<p>Kumar added that the non-compliant 73% includes some G20 countries. He\u00a0wrote:<\/p>\n<p>\u201cThis unacceptable situation must be urgently addressed.\u201d<\/p>\n<p>The FATF chief said that many countries do not have the experience to tackle illicit financial flows when they become digital and the watchdog intends to roll out a new program \u2014 which will include the so-called \u201ctravel rule\u201d \u2014to help them adapt.<\/p>\n<p>The travel rule will mandate virtual asset service providers like exchanges to pass along information to one another \u2014 and supervisory bodies \u2014 for crypto transactions that cross a certain threshold.<\/p>\n<h2>Updated recommendations<\/h2>\n<p>Kumar said the FATF recommends that countries should immediately start working on two areas to ensure cryptocurrencies cannot be used for illicit financial transactions.<\/p>\n<p>The first area is ensuring transparency of beneficial ownership, which is \u201ccrucial in fighting money laundering, corruption, tax evasion and sanctions evasion.\u201d<\/p>\n<p>Kumar said criminals abuse the lack of transparency in ownership laws to hide their financial activity through complex corporate structures and countries must implement the FATF\u2019s updated recommendations to close these loopholes.<\/p>\n<p>The second area countries need to focus on is recovering the proceeds of crimes. Kumar wrote that asset recovery helps strengthen trust in law enforcement as it helps victims directly and is an \u201ceffective\u201d method of stopping economic crimes. However, countries have barely done any work on asset recovery and only a small fraction of the global illicit financial flows are ever recovered.<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/fatf-head-urges-g7-to-bring-order-to-lawless-crypto-space\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Financial Action Task Force (FATF) head T Raja Kumar said G7 nations need to take a more proactive approach to regulate the \u201clawless crypto space\u201d as it continues to allow illicit financial transactions to occur around the world. Kumar made the comments in a letter published ahead of the G7\u2019s 2023 Summit in Hiroshima [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":12035,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-12034","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/12034","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12034"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/12034\/revisions"}],"predecessor-version":[{"id":12036,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/12034\/revisions\/12036"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/12035"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12034"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12034"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12034"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}