Germany is behind the chairmanship of the International Financial Action Task Force (FATF or FATF). The question is: How might this change affect the crypto market? New crypto regulation?
For those who do not know it, the FATF is an intergovernmental institution that aims to develop policies that help combat money laundering and terrorist financing.
Obviously, the institution’s objective has led it to meet cryptocurrencies along the way.
Accordingly, last year the FATF published anti-money laundering standards and other regulations that crypto exchanges must comply with. In fact, the G-20 Summit immediately showed its determination to comply with the guidelines.
But recently there have been changes in the organization that could have an impact on how the crypto market is regulated.
It was recently informed that the FATF will have a new president, Dr. Marcus Pleyer from Germany, who will replace Xiangmin Liu from China. Pleyer took office on July 1, 2020.
“Dr. Marcus Pleyer begins today as FATF President. He is the first FATF President with a two-year term. He is Deputy Director General at the German Federal Ministry of Finance ”, You can read it in the @FATFNews Tweet.
In this sense, Pleyer’s objectives regarding the “New standards on virtual assets” were recently presented to the press, which is of special interest to the crypto community.
“The German Presidency intends to take advantage of this work, focusing on the opportunities that technology can offer, by launching an initiative to monitor risks and explore opportunities,” Pleyer assured.
Could we see changes in how the crypto market is regulated by FATF?
Obviously the change over the country behind the institution draws the attention of the crypto community. Let’s keep in mind that when it comes to cryptocurrencies, Germany has been much friendlier.
In addition, Pleyer revealed the results observed as part of the review that was conducted on how each country implemented the standards on cryptocurrencies. In this sense, the new president assured that he has seen an important advance in the implementation of crypto regulation standards.
However, he also noted that “more guidance on virtual assets and VASP is required.” It is because of that “the FATF will continue its enhanced monitoring of virtual assets and VASPs by conducting a second 12-month review for June 2021“
Stablecoins, although they have gained ground and confidence, have also been seen as a greater threat to the monetary system as we know it today, even more than crypto.
In this sense, Pleyer also discussed in the session about them and assured that the FATF standards also apply to Stablecoins and no amendment is required at the moment.
However, he recognized that this is an area of constant evolution and that, therefore, it must be kept under constant study and supervision.
“This is a rapidly evolving area and it is essential to continue to closely monitor LD / FT risks of stablecoin calls, including anonymous peer-to-peer transactions.”Pleyer said.
With the change of presidency we can expect changes in the organization and the way of running the organization, however it is worth asking: How different can cryptocurrency regulation be?
In general we can note that the crypto market must be regulated, however, the way in which it is carried out is essential.