Bitcoin Global News (BGN)

November 13, 2018 -- ADVFN Crypto NewsWire -- The overall transition of global financial systems to digital formats has been gaining speed since the advent of the internet. With the introduction of cryptocurrencies, an entirely new system for digital finances has opened up and provided a myriad of unforeseen benefits. This new form of currency simply doesn’t fit into the existing financial legal frameworks for individuals or businesses.

The deeper advantages of blockchain technology are now clearly evident. Private companies globally have introduced novel ways to incorporate the decentralized, peer-to-peer method for establishing data networks. However, these new currency networks have also created new pathways for illegal monetary transactions.
 

Coming Full Circle

As the exponential rise of value of the cryptocurrency market has now retreated and begun to become more steady, governments around the world are taking the time to implement the legal frameworks that will allow the benefits of cryptocurrencies to not be overshadowed by the negative.

This past summer proved to be monumental for this process. Several global conferences brought together lawmakers who had finally had the time to learn about and understand cryptocurrencies. In July The Financial Stability Board delivered a report to G20 Finance Ministers and Central Bank Governors outlining their approach to crypto-assets.

“Crypto-assets raise a host of issues around consumer and investor protection, as well as their use to shield illicit activity and for money laundering and terrorist financing. At the same time, the technologies underlying them have the potential to improve the efficiency and inclusiveness of both the financial system and the economy.” - FSB Chair and Governor of The Bank of England Mark Carney

Anti Money Laundering Focus

FATF is responsible for developing the operational measures to prevent money laundering in Europe and around the world. The group is composed of 35 countries. Naturally, cryptocurrencies are at the forefront of their research over the past several years. They released a “risk-based-approach” guideline for cryptocurrencies back in 2015, but have now put regulations in place that are in union with much of what was highlighted by government conventions over the summer.

Their Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) have been amended to include exchanges, wallet providers, and providers of financial services for ICO. A new system of licensing, registering, and monitoring these entities to ensure their compliance with existing regulations. They are similar to those of South Korea, where anonymous trading has been banned and stricter guidelines for exchanges are being implemented.

By: BGN Editorial Staff