The president of the Financial Action Task Force (FATF), T Raja Kumar, has called on G-7 advanced economies to lead the way in implementing the watchdog's recommendations.
FATF Chief Calls On G7 to Wrangle ‘Lawless Crypto Space’
The president of the Financial Action Task Force (FATF), T Raja Kumar, has called on G-7 advanced economies to lead the way in implementing the watchdog's recommendations to combat illicit financial flows through cryptocurrencies. In a strongly-worded letter titled "An end to the lawless crypto space," Kumar emphasized the need for urgent action to close down lawless spaces that enable criminals, terrorists, and rogue states to exploit crypto assets. The FATF has urged countries to adopt its updated requirements, including the controversial "travel rule" that mandates crypto service providers to collect and share information on high-value transactions to prevent money laundering and the financing of terrorism.
Kumar highlighted that progress in implementing FATF's updated requirements on crypto assets has been relatively poor, with 73% of countries still non-compliant or only partially compliant with the standards. While analysts estimate that only a small percentage of crypto transactions are unlawful, Kumar believes these figures may be too low. He emphasized the importance of G-7 countries taking the lead in fully implementing FATF's global standards to ensure collective success in combating illicit financial activities facilitated by cryptocurrencies.
The G-7 leaders, set to meet in Hiroshima, Japan, will discuss various agenda items, including the regulation of cryptocurrencies and the overall industry.
