Regulation News

Cryptocurrencies Are Back On G20 Agenda

The G20 group that unites twenty most powerful economies has released a joint a communique. In it, the countries urge the Financial Stability Board (FSB) to produce a multilateral response to the crypto realm’s problems.

This year Japan hosted the G20 meeting in the town of Fukuoka. After the gathering, the G20 countries released a traditional communique, which highlights the main messages pertaining to the world economy.

The countries state that global growth is apparently stabilizing. To ensure the recovery, further action is necessary, particularly structural reforms and mitigation of regional conflicts. The document also contains a clause about the cryptocurrency sector.

The G20 representatives maintain that “technological innovations, including those underlying crypto-assets, can deliver significant benefits to the financial system and the broader economy.”

However, the countries are still vigilant of the risks. For instance, they brought up the recurrent need to ensure consumer and investor protection. The countries also propounded the implementation of anti-money laundering (AML) rules. And mentioned the need to counter the financing of terrorism (CFT).

“We reaffirm our commitment to applying the recently amended FATF (Financial Action Task Force) to virtual assets and related providers for AML and CFT. We look forward to the adoption of the FATF Interpretive Note and Guidance by the FATF at its plenary later this month,” the communique reads.

The countries also asked the FSB and standard-setting bodies to enhance its regulatory framework. Particularly, the organization should monitor potential risks and “consider work on additional multilateral responses as needed.”

G20 makes it clear that it is anticipating FSB’s report on decentralized technologies. This report should help assess its implications and enhance dialogue with relevant stakeholders. The countries also aim to step up and introduce technologies for preventing cyber attacks.

Nothing new

The latest communique hardly differs from the previous ones. Last year, G20 issued a similar document, in which it pledged to regulate the industry. It also mentioned the need to counter money laundering and terrorism financing.

What’s more, it seems that the authors of such communiques use templates, as the previous statements contain the same wording. For instance, in summer 2018, the countries stated that “While crypto assets do not at this point pose global financial stability risk, we remain vigilant.”

Previously, Altcoin Buzz reported that Japan, the host of the mentioned G20 meeting, tightened its grip on cryptocurrency exchanges ahead of the summit. Also, Europol, the European version of Interpol, together with the Dutch and Luxembourg authorities shut down a Bitcoin blender because of money laundering.

View original post

Show More

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button