Group of development of financial measures against money laundering (FATF) revealed details of the ongoing development of recommendations on regulation of cryptocurrencies. The release of a special set of rules will take place next year.
The President of the FATF, Marshall Billingsley (Marshall Billingslea) summarized the contents of the document, explaining that the General recommendations relate to the introduction of advanced mechanisms for the licensing or supervision of cryptocurrency exchanges and providers of encrypted wallets. He added:
“The phased approach will prepare the relevant FATF recommendations for the regulation of the market of services related to digital assets based on risk, including supervision and monitoring of suppliers of these services; and recommendations for operational and law enforcement bodies on revealing and investigation concerning illegal activities with the involvement of digital assets”.
The President continued, stressing that the Agency will regularly conduct inspections to verify the implementation of the recommendations by countries that recognize the document. According to Billingsley, given the evolving functionality of digital assets, the FATF will audit operations and performance including in countries whose governments follow the recommendations:
“In light of the rapid development of the range of financial functions performed by virtual assets, the FATF will review part of the activities and business operations complemented by the publication of Recommendations and Vocabulary for the next 12 months and decide on the need for further amendments to ensure the relevance of the FATF Standards”.
Billingsley also reported that by June 2019, the organization will issue corresponding instructions to step-by-step implementation of standards of regulation of tokens and cryptocurrencies.
For the first time an intergovernmental body has announced its intention to issue regulations for the cryptocurrency exchanges in June this year. Early resolution of the FATF on the activities of these platforms, had no binding force, were adopted in 2015.