T Raja Kumar, the president of the Financial Action Task Force (FATF), has called on G-7 advanced economies to adopt the FATF’s cryptocurrency regulations as a crucial step in combatting illicit financial flows. Kumar’s message, titled “An End to the Lawless Crypto Space,” emphasized the need to regulate the crypto sector to eliminate safe havens for illegal crypto transactions. During a recent meeting, the finance ministers and central bank governors of the G-7 countries discussed crypto regulation and are expected to reaffirm their commitment to stricter global crypto regulations at the upcoming summit.
The FATF has urged countries to implement its “travel rule,” which requires crypto service providers to gather and exchange transaction information to combat money laundering and terrorist financing involving digital assets. However, progress in implementing the FATF’s updated requirements for crypto assets has been insufficient, with approximately 73% of countries considered non-compliant or only partially compliant. Kumar stressed the urgency of addressing unregulated areas that allow criminals, terrorists, and rogue states to exploit cryptocurrencies.
The active involvement and full implementation of FATF’s global standards by the G-7 countries are vital for collective success in combating illicit financial activities associated with cryptocurrencies.