The Financial Action Task Force announced plans to set forth rules regulating cryptocurrency in line with its global AML/CFT standards. This move is geared towards eradicating the use of digital currencies for money laundering and financing terrorism.
FATF Recommendations and The Digital Currency Industry
As reported by , the global watchdog made this announcement at its 2018 plenary session. The set of rules will apply to cryptocurrency exchange operators, ICOs and providers of encrypted wallets operational in member jurisdictions.
A publication on the FATF website gives further information about the organization’s plan. The FATF has updated its standards to include digital currency activities. This is in response to the increasing use of cryptocurrency as a tool for terrorist financing and money laundering. Through a systematic process, the FATF will issue these amendments and elaborate on how they apply to digital assets. The FATF will offer guidance in its jurisdictions for the monitoring and supervision of crypto industry operators.
Reportedly, the FATF will issue these new rules in summer of 2019. Reuters quotes the FATF President Marshall Billingslea as saying:
By June, we will issue additional instructions on the standards and how we expect them to be enforced.
The president further stated that the body would periodically review the implementation of these rules. Erring member countries could face restricted access to the global financial system.
The task force, however, emphasized that countries are at liberty to decide under which AML/CFT category of regulated activities to classify digital currency providers.
Tackling Money Laundering in The Cryptocurrency Industry
This move by the FATF is in response to various calls from private institutions and governments for clarity about how its standards apply to the cryptocurrency industry. In March, Ethereum World News reported on the efforts to establish a standardized framework to eliminate the use of virtual currency in illicit financial activities.
Some countries are in the process of creating a legal framework to monitor and regulate the activities of crypto operators. recently issued laws to oversee ICOs and crypto financial service providers. The Japanese Government strictly regulates crypto operations in the country. Last year, the country’s top financial regulator mandated all cryptocurrency operator to register with the government. This is primarily to curb money laundering activities.
The FATF’s decision to wade into the crypto space is a significant step in achieving standardized, coordinated regulatory framework for the industry. This might boost confidence in the industry and see countries like China reverse their blanket ban on virtual currencies.
Image courtesy of the Jakarta Post.
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Charles Hoskinson, the mastermind behind Cardano (ADA), conducted a “Surprise AMA,” on October 17th from a hotel in Toronto, in which he talked about several topics related to his popular cryptocurrency and its development.
Logos for the Cardano Blockchain and its token ADA
In spite of the surprise, the community quickly rushed to interact with him, asking several questions and comments in the hope of getting feedback from the leader of IOHK. Hoskinson apologized for the haste and difficulties regarding the relationship with the community, ensuring that the team “will make an announcement, probably in a week or two, about community management, at IOHK.”
From the theoretical point of view, Cardano is one of the most interesting projects of the crypto-verse. Its conceptualization of a blockchain 3.0 has much potential to solve the main problems of the current blockchain (scalability, sustainability, and interoperability), which is why many people have high expectations regarding its development.
EOS Logo
Given this situation, while chatting, an unidentified user made a comparison between Cardano and EOS. According to the user, EOS had managed to raise 4 billion dollars, while Cardano, an older and more well-known project “barely” managed to scratch 60 million dollars.
In this regard, Hoskinson commented that the stability of a project, or the ability to succeed, is not necessarily determined by these figures. In fact, Cardano’s development has been characterized by being slow but with very few chances to find any bug:
Hoskinson: Money Not Always Equals Success
Hoskinson made a counter-argument, mentioning that Ethereum had barely achieved 18 million and bitcoin had not obtained any funding; however, their success is undeniable:
It’s kind of funny that the number two cryptocurrency raised 18 million to get where it’s at, and the number one cryptocurrency raised nothing. So if you think about that, there is strong evidence in the space – the amount of money you raise doesn’t really have a lot to do with your ability to succeed.
Later on, another user asked him if EOS could make use of Cardano’s platform once it is 100% complete and operational. To which Hoskinson responded:
Well, sure. We could fork EOS and attach it to our chain. I don’t think it’s a particularly good idea for people to lose money … but if they want to do it, someone could do it.
Cardano’s team rarely talks about the price trends of their ADA token. Generally, their statements focus on academics or directly on the progress of their roadmap.
EOS has been a blockchain focused on the decentralization of applications, and despite having maintained a very positive community, the errors found, and some recent criticisms have prevented its adoption from growing despite having launched its mainnet.
Cardano is still in the development phase. It ranks 9th in the global market cap with a total value of 1.9B USD, EOS ranks 4th in the global market cap with a total value of 4.8B USD.
The complete video can be found below. The link is set to start during the answer to the question related to EOS:
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Hope your all well?
Did you miss our last AMA/FAQ livestream on Youtube? Don’t worry, this update should keep you up to speed with all the latest developments…
