Global money-laundering watchdogs to launch crackdown on cryptos

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Global money-laundering watchdogs to launch crackdown on cryptos

On Friday, the 21st of June 2019, a global watchdog said that the cryptocurrency firms would now be held legally responsible for potential abuse of digital coins likes of bitcoin for money laundering, remarking the first regulatory attempt to weather the rapidly rising sector.

In point of fact, on Friday’s commentary, the Financial Action Task Force (FATF), a thirty-year-old global watchdog founded to tackle money laundering, had been quoted saying that the countries should tighten monetary policies of crypto mines and exchanges in order to prevent digital currency’s abuse of channeling money without chiming traditional financial institutions.

Besides, latest crackdown on cryptos came forth just a few days after the social networking giant, Facebook had unveiled its plan of launching a new cryptocurrency, Libra, which had every potentiality to deliver services and receive payments without any financial surveillance, given the extent of its havoc-scale user-base.

If truth is to be told, over the narratives of a disdainful background of digital currencies, the latest move of FATF, which involves wide-ranging countries from US to China and regulatory bodies such as EU Commission, had reflected growing worries of international law enforcement agencies that the cryptocurrencies were being used for multiple criminal offenses including money laundering.

Adding that the FATF’s proposal of overseeing the crypto exchanges would bar the agencies from transferring funds without detection, US Treasury Secretary, David Mnuchin told at a FATF meeting in Florida, “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”.