Germany is located behind the presidency of the Group of International Financial Action (GAFI or FATF, for its acronym in English). The question is: How could I affect this change in the crypto market? What new crypto regulation?
For those not in the know, the FATF is an intergovernmental institution that aims to develop policies that will help to combat money-laundering and the financing of terrorism.
Obviously, the aim of the institution has led to any of the cryptocurrencies in the way.
Therefore, the last year the FATF published a few standards against money laundering and other regulations that the crypto exchanges must comply. In fact, immediately the Summit of the G-20 showed its determination by complying with the guidelines.
But recently there have been changes in the organization that could have an impact on how it regulates the crypto market.
Recently it was reported that the FATF will have a new president, Dr. Marcus Aplicati of Germany, which replaces Xiangmin Liu of China. Aplicati took office on July 1, 2020.
“Dr. Marcus Aplicati begins today as President of the FATF. He is the first president of the FATF, with a mandate of two years. Is Deputy Director General in the Federal Ministry of Finance of Germany”, can be read in the Tweet of @FATFNews.
In this sense, recently presented to the press the objectives set by Aplicati with regard to “New standards on the virtual assets”, which is of special interest to the crypto community.
“The German Presidency intends to build on this work, focusing on the opportunities that technology can offer, to launch an initiative to monitor the risks and to explore opportunities,” said Aplicati.
What we might see changes in how it is regulated the crypto market by FATF?
Obviously the change will have on the country that lies behind the institution called the attention of the crypto community. Keep in mind that, in regards to the cryptocurrencies, Germany has been much more friendly.
Also, Aplicati revealed the results observed as part of the review that is conducted on how each country implemented the standards on the cryptocurrencies. In this sense, the new president said that he has seen a major advance in the implementation of the regulatory standards crypto.
However, it also noted that it requires an “orientation about the virtual assets and the VASP”. It is for this reason that “the FATF will continue its monitoring improved virtual assets and VASP to perform a second review 12 months to June 2021“.
The Stablecoins although they have gained ground and confidence have also been seen as a greater threat to the monetary system as we know it today, even more than crypto.
In this sense, Aplicati also discussed in the session on them and assured that the standards of the FATF also applied to the Stablecoins and do not require amendments for the time being.
However, he acknowledged that this is an area of constant evolution and which, therefore, must be kept in continuous study and monitoring.
“This is an area that is evolving rapidly and that it is essential to continue to closely monitor the risks of LD / FT of the calls stablecoins, including transactions anonymous peer-to-peer,” said Aplicati.
With the change of presidency can we expect changes in the organization and how the organization, however it is worth asking: how different can be the regulation of cryptocurrencies?
In general we can note that the crypto market must be regulated, however, the manner in which they take place is essential.