Global Watchdog Tightens Crypto Rules to Combat Money Laundering

The Financial Action Task Force (FATF) has published new recommendations for combatting money laundering through cryptocurrencies. The guidelines, released on February 22, focus on stablecoins and offshore crypto companies operating in jurisdictions with lax regulations.

FATF emphasizes the need for countries to implement the 'travel rule', which requires exchanges to share information about transactions when they exceed certain thresholds. This rule is intended to prevent money launderers from hiding their tracks by moving large amounts of cryptocurrency across platforms.

The FATF also warns that stablecoins, which are pegged to traditional currencies and offer a more stable store of value, are increasingly being used by criminals due to their ease of use and steady value. To combat this trend, the organization recommends that countries regulate these digital coins more strictly.