Hi, Faiz Makrani is here for your service. My friends and consider reading my previous article because there is information regarding crypto regulation in different countries. These years have been the greatest for cryptocurrency because crypto is growing rapidly, but that was not easy, and we have faced big crashes like the Terra-Luna crash. But tough times come and go in crypto, now, people use cryptocurrencies to transfer, invest, make online purchases, etc. But rules and securities are important, and FATF plays an important role here. FATF is the Financial Action Task Force.
Understanding FATF?
When it comes to terror funding and money laundering, FATF comes in. Countries need to handle financial crimes, and FATF helps them to do it by setting the standards, which are for the globe. This is not an organization that sets laws directly, but when it comes to influencing the national governments, FATF is here, and it works, but now you may think, why does it matter for countries? So there are economic penalties, and not only this, but it is the question of trust. That's the reason it highly influences the countries.
Cryptocurrency and FATF
Criminal activity is a problem that every sector is facing, and also in crypto, we are seeing criminal activity. There are crimes like suspicious funding and illegal money in crypto, and it is difficult to track; however, this case is with paper money, too, and paper money is difficult to track. In 2019, the crypto-related guidelines were released, and these guidelines were regarding VASPs and VAs and you can read them on internet.
Let's talk about the Key Effects of FATF Guidelines
Because of FATF guidelines, the Stronger Regulations Worldwide are happening. It's increased transparency, Crypto companies are facing issues because of complex and costly rules, and it is getting Mixed Reactions from the Cryptocurrency Community because they believe these rules are not good for crypto innovation.
Crypto is known for decentralization and freedom for the people, by making such rules it is taking away the freedom of people and takes financial freedom. Regulation is needed, but at the same time, it should not be harmful for crypto innovation, and this particular thing is still a challenge for everyone.
Conclusion
How to regulate crypto, in this, FATF is helping, and because of this, the crypto environment is becoming transparent, safer, and also accountable, but these changes are not perfect, and challenges are there because this industry's regulation should be beneficial for everyone and we can see that this thing is not happening. I would like to know your opinion on this matter, and especially the conclusion that I shared, because I think FATF is not perfect and there are challenges. Please consider sharing your opinion for a healthy debate. Also, share this post on social media. Have a good night, and I will meet you tomorrow with a great topic.
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