On June 12, a Japanese official told Reuters, Financial Action Task Force (FATF) which is the international group that combat money laundering and terrorism financing is planning to start binding rules for crypto exchanges in June.
The non-binding rules that were adopted by the FATF in June 2015 will be upgraded with the new rules. The existing guidelines on anti-money laundering (AML) measures, reporting suspicious activities of trading and if they can if they can be implemented will be considered by the FAFT. According to reports, investigations on how to deal with countries that have already banned cryptocurrencies will be done by the intergovernmental organizations.
By 2019, the Japanese authorities hope to become the leader in this matter and promote the adoption of the new binding rules, stated the official. The official also said that the Japanese government also hopes to corporate with the US and European countries on this matter.
The FAFT was founded in 1989 at the behest of the G7. the intergovernmental organization is based in Paris and consists of 37 different member states.
The FAFT’s recent move is followed by the recent release of the draft on the new regulations for crypto exchanges and payment services by the Canadian government. The new rules aim to address a “number of deficiencies” that the FATF outlined in 2015, particularly boosting the country’s AML and crime financing prevention measures.