FATF proposes risk-based approach for banks and bitcoin

The Financial Action Task Force (FATF) has acknowledged the problems hampering associations between bitcoin businesses and banks.

The agency proposed a risk-based approach to ensure that every cryptocurrency business is assessed on an individual basis, at a Brussels meeting with industry figures last Friday.

The proposal expects to move the virtual currency sector away from the present de-risking model, in which banks close or deny bank accounts to bitcoin businesses, citing money laundering as the reason, reportedly.

Siân Jones, the co-lead of regulation and banking group at the UK Digital Currency Association told CoinDesk, "In a way the organisation is supportive of bitcoin businesses and them not being denied bank accounts. I think that there is also concern that by denying [bank accounts to] whole industries or sectors of industries there is the unintended consequence of driving the money transmission systems underground."