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Swiss think tank pushes for stronger global cooperation on crypto regulation

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To combat illegal activity and regulatory arbitrage, a Swiss-based think tank has been pushing for 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 illicit crypto markets. Proposed solutions include greater cooperation between jurisdictions, as well as the creation of global standards for cryptocurrency regulation.

According to the paper, investigators working with cryptocurrency should invest in learning approaches and technology that are contemporary with the evolving techniques of criminal organizations. It also recommended that judicial authorities develop new methods of prosecuting money laundering based on virtual assets.

Crypto regulation is a contentious issue in the industry, with some arguing it stifles innovation while others believe it’s necessary to protect investors and fight crime.

The recommendations follow comments from acting director of the US Financial Crimes Enforcement Network (FinCEN), Him Das, in early April, when he said the agency’s existing capabilities were not adequate for the types of threats we see with cryptocurrency .

In the UK, experts have pointed out that financial regulators are using laws more than 20 years old to tackle crypto laundering as the government promises enhanced protections for the financial system through the recently introduced Economic Crimes Act.

Related: Crypto needs regulation but should be done right: report and database

As Cointelegraph reports, the governors and finance ministers of the Group of Seven, or G7, are reportedly poised to discuss cryptocurrency regulation. Representatives from the United States, Canada, Japan, Germany, France, Italy and the United Kingdom will most likely raise issues related to a regulatory framework for cryptocurrencies at a meeting in Bonn and Koenigswinter, Germany. The US Securities and Exchange Commission recently announced that it will almost double the number of staff responsible for protecting investors in cryptocurrency markets.