Digital coins have been largely used by criminals to launder the profits of their illegal activities.
FATF noted that is time for states to channel the use of such assets by properly regulating the market and by setting professional obligations on exchanges and custodians.
This statement comes as concerns grow about the use of such assets and the impact the Facebook’s crypto currency Libra will bring.
In the case of Libra, a initial counter measure started as three European central bankers have claimed oversight over the cryptocurrency.
The framework proposed require from countries to register firms related to the business including exchanges and custodians of this sort of assets.
The professional obligations will include customer due diligence, cooperation with authorities and measures to prevent market abuse/manipulation.
Mr. Steven Mnuchin (US secretary of treasury) noted: “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,”
FATF is looking at measures which start with collection on data up to transaction monitoring and requirements of transparency, nonetheless the latest appear to be difficult to achieve given the specificities of the block technology.