G7 Taskforce To Be Setup For Studying Crypto Regulation

G7 Taskforce To Be Setup For Studying Crypto Regulation
June 25, 2019

 

The cryptocurrency market continues to remain in an uptrend with occasional small price corrections. Bitcoin (BTC) has gained 4.6% in the last 24 hours to trade at $11,183.71. Similarly, Ethereum (ETH) has gained 2.8% to trade at $312.20. However, Litecoin (LTC), which is forecast to undergo halving of mining reward in August, has inched up only 0.8% to trade at $136.06. Monero (XMR), the privacy-focused cryptocurrency, has rallied 3.7% to trade at $117.03. Other major altcoins which have gained between 0.5% and 2% include IOTA (MIOTA-$0.4551, 3.0%), Binance Coin (BNB-$36.91, 2.4%), Ripple (XRP-$0.4699, 2.5%), Tron (TRX-$0.0384, 4.3%) and EOS (EOS-$7.27, 1.8%), (XLM-$0.1282, 1.6%) and Cardano (ADA-$0.0972, 2.4%).

 

Government level initiatives

Russia considering allowing the trading of cryptocurrencies

A Russian Ministry of Finance (MinFin) official has revealed that the ministry is contemplating permitting the trading of cryptocurrencies. Finance Deputy Minister Alexei Moiseyev told reporters on Friday that although MinFin had not arrived at a final decision, cryptocurrency buying and selling may be permitted in the forthcoming bill on cryptocurrencies circulation.

The Russian Federation enacted a law banning the use of cryptocurrencies as a method of settlement in May 2018. Anatoly Aksakov, head of the Duma Financial Market Committee revealed that the Financial Action Task Force suggested Russia pass a law governing the use of cryptocurrencies by the end of 2019.

 

France to establish a task force for monitoring and governing cryptos

France is setting up a G7 task force to decide how central banks can monitor and govern cryptos, including Libra, the stable coin planned to be introduced next year by social media platform provider Facebook.

Regarding the task force, Francois Villeroy de Galhau, the governor of France’s central bank, said: “We want to combine being open to innovation with firmness on regulation. This is in everyone’s interest.”

France has explained that it is not trying to derail Facebook’s project but opposes the plan to make Libra a sovereign currency. Of late, crypto industry observers have raised concerns about anti-money laundering, consumer protection, and other rules which may not be easy for cryptos to comply with, given the fundamentally different structure. The task force will be headed by Benoit Coeure, who is also a member of the European Central Bank.

 

FATF to clamp down on cryptocurrency exchanges

FATF (Financial Action Task Force), an intergovernmental organization that concentrates on battling money laundering, intends to tighten its grip over cryptocurrency exchanges, so that anti-social elements will find it impossible to use cryptocurrencies for money laundering and other related illegal activities.  The US Secretary Steven Mnuchin revealed the decision by FATF to focus on cryptocurrencies and increase regulation.

Mnuchin further stated that the latest initiative would necessitate that cryptocurrency related service providers adhere to anti-money laundering (AML) rules and fight funding to terrorists in the same manner as conventional institutions. FATF’s latest document provided in-depth guidelines on the subject.

In particular, FATF requires cryptocurrency operators to confirm the identity of cryptocurrency senders and recipients, perform verification to guarantee that they are not becoming involved in illegal activity and create risk-management strategies, among others.

Mnuchin said: “By adopting the standards and guidelines agreed to this week, the FATF will make sure that virtual asset service providers do not operate in the dark shadows. This will enable the emerging FinTech sector to stay one step ahead of rogue regimes and sympathizers of illicit causes searching for avenues to raise and transfer funds without detection.”

 

Private sector initiatives

IOTA joins up with Primority

German blockchain startup IOTA, which developed the tangle technology, has partnered with Primority, a digital food safety management company, to trace food allergens using blockchain technology. With this partnership, IOTA, the non-profit organization, intends to minimize risks related to deadly food allergens that affect over 220 million people diagnosed with a food allergy across the globe.

Both parties have decided to combine their efforts and create an app that would facilitate consumers to test food products for allergens, particularly those items which share their production lines with products that can induce allergies.

In particular, the app will be built using IOTA’s tamper-proof distributed ledger protocol Tangle and incorporated in Primority’s 3iVerify platform, thereby facilitating the data obtained from manufacturers to be made available on Tangle without any involvement of third-party.

The app will also permit consumers to gather all relevant details about food products by scanning a barcode. The information that would be made available to consumers includes ingredients used and their suppliers and assessment of the method employed for production. IOTA has emphasized that consumers will be able to obtain information “without sharing any personal, sensitive information, and without owning any cryptocurrency.”

Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.

Sammy

Sammy

Sammy is our forex expert, with over 20 years experience in the financial sector, she will be keeping you up to date with the ups and downs of currencies around the world


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