New global cryptocurrency system set to fight money laundering

Framework would require exchanges to confirm users' personal data

20190809 Money laundering concept. Yellow clothes peg hold Bitcoin and one hundred dollar banknotes

Governments around the world are looking for ways to prevent cryptocurrencies from being used for money laundering.

YUKIHIRO SAKAGUCHI, Nikkei staff writer

TOKYO -- Global standard-setters have asked the crypto industry to create a system to collect and share personal data on individuals who conduct cryptocurrency transactions. The goal is to prevent funds from being laundered, going to terrorist organizations or otherwise being put to illicit use.

Updated standards from the Financial Action Task Force, an international organization comprising more than 30 member countries and economies, will require cryptocurrency exchanges to confirm their customers' identities and store that information securely.

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