The president of the global financial crimes watchdog, T Raja Kumar called on G-7 advanced economies to implement FATF recommendations against illicit financial flows in crypto. The message, titled “An end to the lawless crypto space,” was issued ahead of a G-7 leaders’ meeting in Hiroshima, Japan, starting On 19 May.
During a recent meeting, the finance ministers and central bank governors of the G-7 countries discussed crypto regulation. They are expected to reaffirm their endorsement of stricter global crypto regulations at the upcoming summit.
The Financial Action Task Force (FATF) has called on countries to adopt its “travel rule,” which mandates crypto service providers to gather and exchange transaction information above a specific limit to combat money laundering and terrorist financing involving digital assets.
According to T Raja Kumar, countries worldwide have made significant progress in adopting many standards. However, when it comes to implementing FATF’s updated requirements for crypto assets, progress has been comparatively insufficient. He mentioned that approximately 73% of countries are either non-compliant or only partially compliant with the FATF’s standards.
Kumar emphasized the need for countries to promptly address unregulated areas that enable criminals, terrorists, and rogue states to exploit cryptocurrencies.
While analysts estimate a small percentage of unlawful crypto transactions (0.1% to 15.4%), the FATF considers these figures potentially underestimating the actual extent. Kumar stressed that G-7 countries playing a decisive role in fully implementing FATF’s global standards is vital for collective success.
