According to the Nikkei Asian Review, 15 countries, in collaboration with the Financial Action Task Force (FATF), intend to establish a monitoring system for cryptocurrencies, in particular for transactions carried out with the main digital currencies.
The objective is to limit the movement of funds for illicit purposes, including money laundering and terrorist financing, by collecting and sharing data on transactions, as well as personal information of cryptocurrency users.
An anti-money laundering system for cryptocurrencies
The FATF, the international body dedicated to the control of money laundering, will manage and implement the project, which should be determined by the end of the year and implemented over the next few years.
Participating nations include G7 members, Australia and Singapore. These are the countries that should be involved in the development of the cryptocurrency monitoring system, according to Nikkei.
Last June, the FATF issued some new regulatory guidelines for the cryptocurrency sector, stipulating that the 30 member countries must provide clear and defined rules for providers of crypto-related services, including the mandatory monitoring and reporting of suspicious transactions and sharing of data on exchange users.
The G7 nations also reported that cryptocurrencies – in particular, Facebook’s Libra – can be a threat to global financial stability and that stricter rules are needed to limit the use of digital currencies in money laundering and terrorist financing.
Rhode Island will regulate crypto as of January
Among other regulatory innovations, Rhode Island has just been added to the list of states of the United States of America to introduce specific regulation for cryptocurrencies.
According to a report published on August 5th by the international law firm Alston and Bird, any commercial activity that accepts, carries out transactions with or has control over certain cryptocurrencies will fall under a specific law that will come into force on January 1st, 2020.
In this case, as well, the reason for this choice is due to the anti-money laundering regulations, now considered necessary even in the cryptocurrency sector.
Many of the requirements introduced by the law are a re-adjustment of the current legislation on the transfer of money in the State.
The novelty is that companies must maintain the cryptocurrencies of the same nature and quantity as the amount that is transferred by the customers.
In addition, in invoices, cryptocurrencies must:
“be defined as a digital representation of the value that is used as a means of exchange, unit of account or store of value but which has no legal tender”.