In order to curb global money laundering of cryptocurrencies’ the Financial Action Task Force (FATF) has launched a global crackdown on Digital coins and told countries to tighten oversight of cryptocurrency exchanges to stop digital coins being used to launder cash. Countries will be compelled to register and supervise cryptocurrency-related firms such as exchanges and custodians, which will have to carry out detailed checks on customers and report suspicious transactions, FATF said in a statement.
“This will enable the emerging FinTech sector to stay one-step ahead of rogue regimes and sympathizers of illicit causes searching for avenues to raise and transfer funds without detection,” U.S. Treasury Secretary Steven Mnuchin told a FATF meeting in Florida, according to remarks posted on the U.S Treasury website.
“This is a risk we all face worldwide,” FATF President Marshall Billingslea told international news agency. “Nations need to move forward rapidly. This is an urgent issue.”
A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrencies use decentralized control as opposed to centralized digital currency and central banking systems.
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17 November, 2019