The Financial Action Task Force Agrees to Regulate Cryptocurrency Exchanges like Banks
By Tyler Smith – Crypto Investor
The Financial Action Task Force (FATF), a group of the world’s leading economies have constructed a strategy to regulate cryptocurrency exchanges in the same way as traditional banks. The plans have been devised as a unified approach to regulating the industry and help prevent nefarious actors selling crypto for terrorist financing.
FATF is made up of 35 of the leading economies around the world that agreed on a report circulated at their last meeting on the regulation of cryptocurrency exchanges. The nations that make up FATF include China, France, Italy, Germany, Japan, Luxembourg, Spain, South Africa along with the UK, US and others. Any exchange seeking to buy and sell cryptocurrency within these nations will be subject to the new regulations.
These tougher restrictions are to be universally imposed across the nations for a unified approach to regulation and will help protect investors’ funds held within the exchanges. Many investors hold funds and assets within an exchange for quick access to buy or sell BTC or other crypto when required.
The report advises that cryptocurrencies and digital assets should be considered as either ‘property, proceeds, funds, funds or other assets or other corresponding value’. Cryptocurrencies are currently considered an asset by many; however, they are not seen by governments as legal tender. Due to how cryptocurrencies have fallen in terms of their asset class, selling Bitcoin has gone unregulated.
FATF believe that all nations should apply procedures according to their recommendations to analyse activity and cryptocurrency transactions to determine effective action to reduce and mitigate any terrorist financial or money laundering.
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