In his maiden presentation to the G20, the new President of the Financial Action Task Force (FATF), T. Raja Kumar, asked governments to "intensify" efforts to regulate the cryptocurrency industry.
Mr. Kumar, speaking at the G20 Finance Ministers and Central Bank Governors Meeting in Bali, Indonesia, said that FATF will "continue to assist the G20 in addressing global economic difficulties.
He continued, "For instance, FATF helps to the safety and security of the global economy by addressing concerns linked to digitalization and crypto-assets. Our initiatives contribute to financial stability and economic growth."
Mr. Kumar disclosed that despite FATF's 2019 introduction of the first globally enforceable AML/CFT criteria for cryptocurrencies, the majority of nations "have yet to adequately regulate this industry."
"Of the 98 nations studied, just 11 are enforcing and overseeing the FATF's 'travel rule'," which assures crypto asset businesses check who their clients and business partners are.
Even among the G20, he said, "several nations have yet to enact the essential laws."
He noted that such vulnerabilities "may and are used for ransomware, fraud, money laundering, and financing terrorism and proliferation" and that "it also makes it more difficult to collect illicit gains."
"At the macro level, failure to act in a timely manner deprives governments of the money their economies require at a time when financing sources are crucial," he said.
The FATF President said that the international financial watchdog will "play its role" and take "additional initiatives to support timely and effective implementation by members and the global network in this arena."
"I urge members of the G20 to lead by example, as you have in other areas... Inaction will let criminals to profit from these weaknesses at the expense of governments and their citizens," he said.
By fLEXI tEAM