FATF Freedom or Chains? | Regulations for the Cryptocurrency | Exchanges in Alert

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INTRODUCTION

Every financial organization at a global level must be oriented to contribute to the development of nations according to their economic model and national laws.

The banking entities, international funds, stock exchanges, are monitored by the state to avoid financial illicit, embezzlement or fraud.

Throughout history has always tried to violate the safety of such bodies.
Terrorism and drug trafficking try to launder their capitals in an unscrupulous manner through banks conducting covert operations and complicity with infiltrated mafias in the organization.

Each country and each economy in the world tell their own story, regarding the issue of security and financial vulnerability, adding robust cases of corruption and laundering.

Because it is a sensitive issue and difficult to expose, most of the time they remain behind the scenes in the shadow of impunity.

THE PROBLEM

Decentralization has allowed us to negotiate with cryptocurrencies over the last 10 years, buying and selling bitcoin has become a habitual task in the blockchain despite the financial risks involved in the volatility of cryptography.

In some countries such as China, mining is prohibited, as this process demands an incredible energy consumption while allowing the illicit enrichment of those who obtain the funds through parallel means without financial control,
in addition to exchanges for fiduciary money without any endorsement. auditable

This has caused a domino effect in several nations of the world where the state tries to locate the massive mining carried out with clandestine bitcoin machines that generate incredible profit margins for their holders.

_{threatpost.com}

Destabilizing the conscious commerce of cryptocurrencies and correlatively affecting the social media platforms which are prone to regulatory processes, since they are the means of creating the coveted tokens that so many natural persons and large organizations wish to have in their assets.

FATF |

What is it? How do you contribute to the financial system?:

Fortunately, there is an international body that can contribute to reducing the scourge of embezzlement and theft within the crypto space.

FATF (International Financial Action Task Force); whose function is to establish control policies that help combat money laundering and the financing of terrorism, according to the legislation of each country.

Based in Paris, FATF was created in 1989 by the G8, and has since been an intergovernmental institution supported by the European Union with more than 36 member countries with objectives that transcend various fields such as:

Economy, finance, commerce, tourism, as well as technical progress in the industry, establishment of scientific research centers and cooperation of the private sector. _{Information consulted at: wikipedia.org/FATF}

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FATF |

What are your most relevant proposals?:

• Implementation of legal tools for the authorities for the confiscation of capital proceeds of money laundering.

• Verification of identity and registration of bank users to avoid suspicious transactions or negotiations outside the law.

• Process cases of suspicious interoperability or of doubtful origin through financial intelligence agencies.

• Cooperate internationally with the investigation of money laundering and terrorism.
  
  

For more information consult:
FATF Mandate 2012-2020 (Final Version)

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FATF |

Fight against the financing of terrorism and money laundering:

So far FATF has made a logistical and regulatory contribution of forty approved recommendations regarding money laundering, in addition to others aimed at preventing the financing of terrorism.

Especially this last part of the quote has caught my attention: "Alternative mechanisms of money transfer", perhaps this is where reference is made to some financing method such as cryptocurrency.

"In any case this happens to be good news within the encryption area because it is a process adjusted to the international law that strengthens the security of cryptographic operations, but nevertheless, it also lights the alarms inside the blockchain because it could put in I play his decentralized character."

FREEDOM OR CHAINS? for the cryptocurrency

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Conclusions:

Let's keep in mind that encryption is software, a complex computer technology with multiple advantages for the consumer, which is why it is becoming increasingly established as the economic model of the future.

It enjoys the preference of users on a global scale, who can access it from any place and at any time with the use of their intelligent equipment, their personal computer or any other means that allows it, also without restrictions of schedules or collection of large commissions for exchanges, which are characteristic of banks.

"Trying to do away with the auditable system of the cryptocurrency would be to suffocate the blockchain and decentralization, so we hope that the interposition of regulatory laws can be carried out in accordance with the reality of the millions of users and companies that today invest digital values with a view to a prosperous future within the chain of blocks."

I'll leave you some interesting questions that could complement the content of this publication, which we could discuss in the comments section:

How do you see the future of the cryptocurrency?
and its possible regulation?

In your country, the use of cryptography is allowed
as a financial means?

Do you think that the FATF should intervene in the financial affairs of the blockchain?

While waiting for this article to be of your liking and can contribute with your knowledge in the area of ​​encryption, I say goodbye.

Credits: @nachomolina
_{Crypto content developer}

The following sources were consulted:

_{www.fatf-gafi.org}

_{cryptocurrencies-terrorism-link-weak}

_{criptomonedas-vs-fiat}

_{bitcoin-and-cryptocurrencies-are-useful-for-money-laundering}

_{Mandate_GAFI_2012-2020}

_{The cover image was edited by the author using PowerPoint 2010}

_{Google translator was used}

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