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Global Watchdog Mulls Binding Rules For Crypto Exchanges

globalwatchdog june15 lt

The Paris-based Financial Action Task Force (FATF), a global watchdog fighting financial crime is planning to frame binding rules to govern cryptocurrency exchanges, Reuters reported, citing a Japanese government official familiar with the matter.

FATF is set to begin discussions on June 24, spurred by a call from G20 financial policymakers in March, the news agency said.

The group with 37 countries as members was founded in 1989 by the G7.

Currently, crypto exchanges are governed by the non-binding guidelines, dating from June 2015, the report said. Under these rules, crypto exchanges have to be registered or licensed and they must verify customers' identities to prevent money laundering, and report suspicious trading activity.

Japan, which is set to chair the G20 in 2020, is the first country to implement a registration regime for crypto exchanges. The country launched the system in 2017 and made it strict this year following the massive hack of the Tokyo-based Coinchek exchange in January.

The Asian nation is calling for adoption of new binding rules by 2019.

There are 16 registered cryptocurrency exchanges in Japan and seven are waiting for approval. Reports citing the country's Financial Services Agency suggest as much as 100 companies are interested in applying for registration.

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