New AML Standards Could Further Limit The Crypto Use By Extremists

By Kapil Gauhar

There has been a long-standing discussion concerning the instances of cryptocurrency by criminal components and radicals like ISIS. An ongoing report from Europol called attention to how psychological militant groups have tried to use cryptocurrencies to raise cash.

CryptoGlobe reported about how Foundation’s Yaya Fanuise for Defense of Democracies Center on Sanctions & Illicit Finance importantly told the same thing to the House Financial Services while noting how “cold hard cash remains king” when it’s about financing.

Presently, the FATF (Financial Action Task Force) says that they are prepared to agree with the latest series of anti-money laundering standards in October that would apply to the virtual currency like Bitcoin, ones that would make it quite harder for the extremist or criminal elements to use cryptocurrencies such as Bitcoin.

Closing Up Technicalities

As indicated by FATF President Marshall Billingslea, the group had sustained a lot of progress on coming to some consensus on standards after the G20 asked for making the issue an urgent one.

Marshall considers that current anti-money laundering standards are yet a “patchwork quilt or spotty process” while contributing towards “significant vulnerabilities” for the financial systems across the world.

At present, Marshall says that the FATF will meet in October to talk about existing standards and also discuss how they should be modified to rope in digital assets. After, the agency will develop the methodology regarding how such kinds of rules are taken into account. The overall goal they have is to create a comprehensive set of standards “that are implemented uniformly”.

Despite the calls from some to ask one agency like Europol with crafting a centralised system for keeping track of digital wallets linked to nefarious activities, Marshall maintains virtual assets are still a great opportunity.

He thinks that regulation doesn’t have to go too far in one single direction since the blockchain technology will continue to evolve.

Kapil Gauhar

Kapil Gauhar is the founder of Blogger’s Gyan. He is a Passionate Blogger, a Big Thinker and a Creative Writer.

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