- FATF is the International financial crime-fighting group for the G20 group of countries.
- The Japanese government became the first nation to adopt the non-binding rules.
- The Japanese government is aiming for support from the nations in Europe and the US.
An official of the government of Japan, according to TOKYO (Reuters) says that the Financial Action Task Force (FATF) is readying for discussions that will bind the laws governing exchanges in the industry. FATF is the International financial crime-fighting group for the G20 group of countries.
At the moment, the rules governing cryptocurrency regulations are non-binding, despite the call for regulation during the G20 summit in March this year. These guidelines were put in place in 2015 and require that cryptocurrency exchange companies carry out checks in order to verify the identity of the customers. This is in line with the effort to see continued business while getting rid of money laundering and illegal trading activities.
The discussions scheduled for June 24 will be exploring the current guidelines and determine if they are still relevant in the market. FATF will also discuss how the rules apply to new exchanges in addition to devising ways to cooperate with states that banned trading of virtual currencies.
The Japanese government became the first nation to adopt the non-binding rules and has since through the Financial Services Agency (FSA), registered exchanges while still monitoring their operations. The Japan government will be chairing the G20 summit in 2020 and is spearheading for the adoption of the binding rules in 2019. The official, who according to Reuters requested to remain anonymous, said that the Japanese government is aiming for support from the nations in Europe and the US.