FATF President Calls on G-7 To Take the Lead To Regulate Crypto Ahead of Japan Summit

The president of a global money laundering and terrorist financing watchdog is calling on the G-7 to take the lead in ending “lawless places” and regulating cryptocurrencies.

Raja Kumar, chairman of the Financial Action Task Force, called on finance ministers of some of the world’s seven most influential economies to implement the FATF recommendations, which include cracking down on money laundering and terrorism financing.

The FATF president said it also includes the travel rule – a requirement that requires crypto service providers to share certain information about transactions in order to prevent misuse by criminals and terrorists.

“The G7 countries must lead by example and regulate the crypto sector so that no virtual safe haven exists for illicit financial transactions,” Kumar said in a post posted on Twitter on Thursday.

Kumar said that countries have made progress in implementing the FATF’s standards, but the updated crypto requirements have been “poor”.

“In 2019, the FATF extended its Global Anti-Money Laundering and Countering Terrorist Financing Standards to crypto assets. However, 73% of countries – including some G20 countries – are still non-compliant or only partially compliant with FATF standards and have not yet begun monitoring crypto activity. This unacceptable situation must be addressed immediately.

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Kumar’s post comes just ahead of the G-7 meeting later this week to discuss a range of issues from nuclear weapons to possible cryptocurrencies.

Ahead of the G-7 Japan summit, the Group of Seven discussed Its commitment to regulating crypto-assets and said it is waiting for the Financial Stability Board’s “high-level finalization of it”. recommendations By July 2023.”

The FSB, an international advisory body created by the G20, put forth its recommendations for crypto regulation in October 2022.

Kumar said there are heightened risks, including ransomware payments, which are almost exclusively made using cryptocurrencies.

“Countries need to take immediate action to shut down lawless spaces that allow criminals, terrorists and rogue states to access crypto assets,” Kumar said.