Tue. Dec 7th, 2021


Global Money Laundering Watchdog Says Uh, Yes, Control Cryptocurrency

Pictures: Ozan Kose / AFP (Getty Images)

Cryptocurrencies must be ruled by appropriate regulations, or increase the risk of widespread crime and misconduct, claims Financial Action Task Force, A global anti-money laundering watchdog, released a new report on the subject on Thursday.

Created in 1989, the FATF is an intergovernmental policy-making body that has helped create and promote financial crime regulations in countries around the world. While this may not actually force anyone to do anything, the FATF’s recommendations have largely helped guide reforms designed to curb money laundering, terrorist financing, and other evils. FATF Is formed Within the jurisdiction of some 37 members, that means it has considerable influence in the world community.

Appropriately, the group has spent recent years drafting policy advice related to digital currency. The FATF released its latest on Thursday ReportDisplays recommendations designed to eliminate crime in the industry, including requesting crypto platforms to do more to verify their users’ identities and report suspicious activity to federal regulators on a more regular basis. It’s all pretty dense stuff but the basic takeaway is this: Take control as soon as possible.

As such, the report looks like more writing on the wall for crypto enthusiasts who hoped that the digital currency would always be a fraud-prone “wild west”. Recent By Securities and Exchange Commission, its creation A new team Of the “crypto police” in the US Department of Justice, and Ongoing discussion As for the Biden administration’s increased oversight, everyone seems to be showing a push to stamp out more freewheeling ways of crypto.

Probably for good reason. While the FATF’s new report optimistically emphasizes that, with proper regulation, cryptocurrencies may have “many potential advantages”, it also notes that, surprisingly, the worst areas below the industry are at the heart of the unadulterated criminal bullshit:

VA-related majority [virtual asset] The crimes highlighted in the report focus on predicate or ML [money laundering] Crime, however, criminals also use VA to raise funds to avoid financial sanctions and to support terrorism. Types of crimes reported by jurisdiction include ML, sale of controlled substances and other illegal items (including firearms), fraud, tax evasion, computer crimes (such as cyber attacks resulting in theft and ransomware), child abuse, human trafficking, prohibition, And TF [terrorist financing].

The Report With a particular focus on decentralized finance (DeFi), the crypto sector dedicated to replicating the functions of traditional banking has a fairly equal view of the industry as a whole.Like trade and debt. In real-world terms, this means a platform that installs automated software designed to make financial transactions without a third party intermediary. There are DeFi products and services Exploded in popularity For the past few years, nonetheless Linking Ongoing fraud, cyber attacks and massive financial losses.

However, the FATF notes that just because these companies call themselves “decentralized” does not mean that they actually do.

The report noted, “It seems very common for DeFi systems to call themselves decentralized when they actually involve a controlled or sufficiently influential person.”

In other words, someone is still in control of your finances — not just a federally regulated financial institution or a legally responsible banking professional. Instead, it’s some people on the internet. As a result, the FATF recommends that many DeFi entities should be subject to many of the traditional legal strictures of “centralized” entities.

The report also reaffirms the widely held belief that crypto has helped fuel the growing ransomware underworld: “VAs are an important tool for ransomware actors, without which it would be very difficult to monetize their underlying crime. This makes it more important for the effective and consistent implementation of FATF standards in this area. ”

Let’s be honest: an industry without regulations is nothing more than waiting for a huge fucking ripoff. Incidentally, Time And Time again Cryptocurrency has proven that, for the most part, it is an excuse for really smart, rich people. Take advantage So smart for rich people, and, of course, for cyber criminals There is a field day.

In an ideal world, we would not be forced to deal with this completely created, Environmentally taxing The problem is that money and resources are now being diverted from reality. But, whatever the world is, regulations seem to be a good idea, yes? Yes.



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