The World Takes Notice

In a modern twist on the age-old game of whack-a-mole, about 15 global jurisdictions, including that elite club known as the G7, are reportedly teaming up to tackle the not-so-secret life of cryptocurrencies: illicit activities. Sources say that by 2020, these countries plan to roll out a system designed to monitor crypto transactions and keep those pesky criminals at bay.

Why All the Fuss?

With innovations like Bitcoin and Ethereum revolutionizing finance, the dark corners of the internet have found their playground. This new system aims to collect and share personal data of individuals conducting crypto transactions. Think of it as the financial equivalent of a neighborhood watch—except instead of keeping an eye out for suspicious activity, it’s shining a spotlight on money laundering and terrorism financing scandals.

A Unified Response

Even if some countries have remained regulatory wallflowers in the cryptocurrency fiesta, this international initiative is a potential game changer. The goal? To cultivate a cohesive legal framework for the crypto landscape globally. The FATF (Financial Action Task Force) is leading the charge with a plan that will see the light of day based on policies introduced in 2020.

Private Sector, Meet Regulation

Once the measures are etched into policy, it’s not Uncle Sam managing the crypto barn—it’s the private sector. This shift means that companies will be at the helm of monitoring these financial transactions. Whether that means more accountability or just more bureaucracy remains to be seen!

What Does the FATF Say?

The FATF isn’t just talking the talk; they had a sit-down in June 2019, issuing guidance on a risk-based approach to digital assets and the companies behind them. They urged member nations to keep a close eye on suspicious transactions by local crypto services, creating a ripple effect that tightened regulations across the board. Take South Korea, for example, where big-name exchanges like Bithumb and Upbit had to jump through regulatory hoops every time they wanted to renew their banking accounts.

G7’s Concern: A Crypto Corsair?

Join the club! On July 18, G7 finance ministers showed their collective furrowed brows over cryptocurrencies, particularly Facebook’s touted stablecoin, Libra. They fear these digital currencies could throw the global financial system into disarray if they’re not kept on a short leash.

So, buckle up—it appears that crypto is heading toward some serious regulations, and the world is watching!