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The fight against money laundering in the crypto sphere has become fierce as the international community has made not just the fight against money laundering but also the financing of terrorism a top priority. This was made known in the Cryptocurrency Anti-money Laundering Report for the third quarter of 2018.
The data shown in the report proves that there are a lot of challenges involved in the fight against money laundering as the crypto sphere encompasses a wide range of applications that involve data, making it a good target for cybercriminals. Although it will take much of a hassle, with the regulators putting up a strong fight, I hope we can achieve some form of success in the near future.
In light of the developments and increasing adoption of cryptocurrency, most countries around the globe have been compelled to list their countries as a place for safe digital market as this would help attract reliable organizations and crypto investors.
Some of the regulatory changes that occurred globally in the third quarter of 2018 include:
The Anti-Money Laundering Directive 5 (AMLD 5)
The European Commission’s 5th AMLD was enforced on the 9th of July, 2018 and these regulations have been scheduled to be put into law by January 20th, 2020.
The regulations which have been extensively restructured now extend its rules to the world of virtual currencies. This new development is proposed to apply the same standards of regulations on both cryptocurrencies and other financial products.
The Financial Action Task Force (FATF)
The FATF and its regional associates are the global watchdogs known to monitor the progress of the 37 member countries in enforcing necessary CTF and AML rules. The new president of the FATF made it known that the FATF is bent on prioritizing work associated with the prevention of money laundering and financing of terrorism.
The report also showed some countries that have adopted some notable regulatory activities in the third quarter of 2018. Examples include:
Bermuda, whose government recently passed a Digital Asset Business Act and an ICO Bill to restructure Bermuda’s Banking Act with the aim of creating a new class of banks that would be saddled with the responsibility of attracting FinTech, blockchain startups and cryptocurrency to the island.
The Malta Financial Services Authority (MFSA) has developed extensive regulations and licensing requirement for businesses operating in the crypto sphere including ICOs and exchanges.
The president of the United States of America signed an executive order in the third quarter of 2018, which is aimed at establishing a new task force that would be focused on financial crimes like digitally currency fraud, money laundering scam, and other financial crimes carried out digitally.
Other countries which have made some notable regulatory changes include Canada, Japan, Mexico, South Korea, and even North Korea.
With these tireless efforts, we can only hope that the crypto sphere becomes more impenetrable to cybercriminals.