G7’s Financial Action Task Force will begin planning binding crypto exchange rules soon

The international Financial Action Task Force (FATF) is due to begin talks on creating binding rules governing cryptocurrency exchanges, a Japanese government official is reported as saying.

The Paris-based Financial Action Task Force, a 37-nation group set up by the G7 economic block, is set to make good on initiatives set in motion by March’s G20 meetings by tightening up existing, non-binding guidelines of cryptocurrencies. The news, reported by Reuters, apparently comes from “a Japanese government official familiar with the matter said on Tuesday”, though they remain unnamed.

The current guidelines, which came into being way back in June 2015, recommend exchanges be registered or licensed, and for them to be required to verify customers’ identities as anti-fraud and anti-money laundering measures. They do not, however, compel member states to enforce them as rules.

New discussions, slated for June 24th, will look at whether the guidelines need a refresh to catch up with the growing and developing markets for crypto. The FATF will also examine, how to enforce rules for new exchanges and how they can interact with countries that have banned cryptocurrency trading.

The Japanese government, Reuters source says, is looking to lead he issue – and will be pushing for binding rules to be in place in the next year or so, certainly before it takes over chair of the G20 in 2020.