The Financial Action Task Force wants to establish rules for handling cryptocurrencies, which should serve as a model for regulation and supervision for nation states. Countries that do not participate will possibly be blacklisted and sanctioned for access to international financial markets.
Although the Financial Action Task Force on Money Laundering rarely is publicly seen, it is nonetheless one of the most important institutions in combating the financing of terrorist groups and organized crime. Currently, 35 states are members of the Financial Action Task Force. They look at cryptocurrencies currently very critical. Because they would open up new possibilities to transfer money unchecked and thereby conceal its origin. That would play terrorists and criminals in the hands.
Therefore, the FATF intends to draft and adopt its first regulation of cryptocurrencies by June 2019. This is not just a first transnational initiative to generally define and regulate digital currencies, but also exchanges and providers to manage cryptocurrency portfolios such as Coinbase.
A regulation for cryptocurrencies would likely oblige Wallet operators in parts to acquire a state license and to comply with certain requirements regarding the verification of the identity of their customers. The launching of Initial Coin Offerings is likely to be associated with higher hurdles in the future, to prevent fraud, as they have repeatedly made headlines. As in other matters, the FATF plans to put states that do not follow suit on a blacklist. These would make access to financial markets much more difficult.