In a bid to combat illegal activity and "regulatory arbitrage," a Swiss-based think tank has urged greater international cooperation on cryptocurrency regulation.
On Monday, the Basel Institute of Governance and the International Academy of Financial Crime Litigators released a paper calling for further coordinated action against unlawful crypto-markets. Among the proposed solutions are greater cooperation between jurisdictions, as well as the creation of worldwide standards for cryptocurrency regulation.
According to the paper, investigators who work with cryptocurrency should invest in learning approaches and technologies that are contemporary with evolving criminal organization techniques. Also, it recommended judicial authorities come up with new methods for prosecuting virtual asset-based money laundering.
Crypto regulation has been a contentious issue in the industry, with some arguing that it stifles innovation, while others believe that it is necessary to protect investors and crackdown on crime.
The recommendations follow the comments by U.S. Financial Crimes Enforcement Network (FinCEN) acting director Him Das in early April when he said that the agency's existing abilities are not appropriate for the types of threats we're seeing with cryptocurrency.
Genuinely impossible to feel sorry for crypto enthusiasts getting wiped out when they showed nothing but extreme ideological hostility for the idea of securities regulation that was designed to protect them from these outcomes.— Michael Tae Sweeney (@mtsw) May 11, 2022
In the United Kingdom, experts have pointed out that financial regulators are using laws that are more than 20 years old to combat crypto-laundering, as the government promises enhanced financial system protection through the recently introduced Economic Crime Bill.
Related: Crypto needs regulation but should be done right: Report and database
As reported by Cointelegraph, the governors and finance ministers of the Group of Seven, or G7, are reportedly prepared to discuss cryptocurrency regulation. Representatives from the United States, Canada, Japan, Germany, France, Italy and the United Kingdom will most likely address issues relating to a regulatory framework for cryptocurrencies at a meeting in Germany's Bonn and Königswinter. The U.S. Securities and Exchange Commission (SEC) recently revealed that it will nearly double the number of personnel responsible for protecting investors in cryptocurrency markets.