Swiss think tank urges greater global cooperation on crypto regulation
A Swiss-based think tank called for greater international cooperation in cryptocurrency regulation to counter illegal activity and “regulatory arbitrationage”.
The International Academy of Financial Crime Litigators and the Basel Institute of Governance released Monday’s paper calling for more coordinated action to combat illegal crypto-markets. The proposed solutions include greater cooperation among jurisdictions and the creation of global standards for cryptocurrency regulation.
The paper recommends that investigators working with cryptocurrency should learn new technologies and approaches to match evolving criminal organization techniques. It also recommended that judicial authorities develop new ways to prosecute virtual asset-based money laundering.
The issue of crypto regulation is a contentious one in the industry. Some argue that it stifles creativity, while others believe it is necessary to protect investors from criminality.
These recommendations are in response to comments made by Him Das, acting director of U.S. Financial Crimes Enforcement Network. He stated that his agency’s current capabilities were not adequate for the type of threat we’re experiencing with cryptocurrency.
It is impossible to sympathize with crypto enthusiasts who were wiped out by extreme ideological hostility to the idea of securities regulation.
— Michael Tae Sweeney (@mtsw) May 11, 2022
Experts in the United Kingdom have noted that financial regulators use laws older than 20 years to combat crypto-laundering. The government has promised enhanced financial system protection with the newly introduced Economic Crime Bill.
Related: Crypto regulation is necessary but should be done correctly: Report and database
According to Cointelegraph, the G7’s governors and finance ministers are open to discussing cryptocurrency regulation. At a Bonn and Konigswinter meeting, representatives from the United States of America, Canada, Japan and Germany will likely discuss issues related to cryptocurrency regulation. Recently, the U.S. Securities and Exchange Commission revealed that it will almost double the number of people responsible for protecting cryptocurrency investors.
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