Bitcoin [BTC], other cryptocurrencies need stronger regulations, says global financial watchdog

On Friday, October 19, the Financial Action Task Force [FATF] stated that cryptocurrencies such as Bitcoin [BTC] and Ethereum [ETH] need to come under fixed laws and regulations to prevent misuse.

The FATF has come down hard on frauds being conducted using digital assets, even threatening to put certain countries in a ‘gray list’ which can drive away investors and interested parties.

The FATF is an intergovernmental organization that aims to prevent money laundering in the fiat world as well as the up and coming cryptocurrency industry. The members include a good portion of the G7 countries, including China and India.

Marshall Billingslea, an assistant US Treasury secretary who holds the FATF’s rotating leadership, stated:

“We’ve made clear today that every jurisdiction must establish virtual currency rules and it’s no longer optional.”

The organization further explained that one of the main changes that need to be carried out is the rethinking of what constitutes ‘virtual assets’ and ‘virtual asset service provider’. The organization stated:

“The FATF Standards permit jurisdictions to prohibit certain activities based on risk and scope in that jurisdiction (e.g. casinos, in jurisdictions where gambling is illegal) and, provided the prohibition is enforced, does not require jurisdictions to have measures to regulate those prohibited activities.”

The FATF has not just focused on the digital assets, but has rather dug deep into the different components of the cryptosphere, including wallets, Initial Coin Offerings and exchanges.

Back in February of this year, an official representing FATF had stated:

“The FAFT discussed the need to revise its own international standards along with the revision of the virtual currency guideline created on June 2015. It agreed to present the report to the G20 finance ministers during the meeting in March.”