In an attempt to combat illegal activity and “regulatory arbitrage,” a group of Swiss think tanks has urged greater international cooperation in regulating cryptocurrencies.
On Monday, the Basel Institute of Government and the International Academy for Financial Crimes Litigation published a document calling for further coordinated action against illegal cryptocurrency markets. Among the proposed solutions are greater cooperation between jurisdictions, as well as the creation of global standards for the regulation of cryptocurrencies.
According to the document, researchers working with cryptocurrencies should invest in learning approaches and technologies that keep pace with the changing techniques of criminal organizations. Likewise, it recommended to the judicial authorities that they devise new methods to prosecute money laundering with virtual assets.
Cryptocurrency regulation has been a contentious issue in the industry, with some arguing that it stifles innovation, while others believe it is necessary to protect investors and combat crime.
The recommendations follow comments from the current director of the United States Financial Crimes Enforcement Network (FinCEN), Him Das, in early April, when he said that the agency’s current capabilities are not appropriate for the types of threats What are we seeing with cryptocurrencies?
Genuinely impossible to feel sorry for crypto enthusiasts getting wiped out when they showed nothing but extreme ideological hostility for the idea of securities regulation that was designed to protect them from these outcomes.
— Michael Tae Sweeney (@mtsw) May 11, 2022
In the UK, experts have noted that financial regulators are using 20-year-old laws to combat cryptocurrency money laundering, as the government promises greater protection of the financial system through the newly introduced Bill of economic crimes.
According to Cointelegraph, the governors and finance ministers of the Group of Seven, or G7, are reportedly set to discuss cryptocurrency regulation. Representatives from the United States, Canada, Japan, Germany, France, Italy, and the United Kingdom are likely to address issues regarding a regulatory framework for cryptocurrencies at a meeting in Bonn and Königswinter, Germany. The United States Securities and Exchange Commission (SEC) recently revealed that it will almost double the number of personnel tasked with protecting investors in crypto asset markets.
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