After this weekend’s G20 finance meeting, the group released a communicated covering several topics, including cryptoassets. They set an October deadline for the Financial Action Task Force (FATF) to report on how to apply existing standards to cryptoassets.
The FATF is an independent intergovernmental body that develops and promotes global policies to protect against money laundering, the financing of terrorism and the financing of WMD.
Ahead of the G20 meeting, they released a report. This included a statement that “besides drug trafficking and small-scale fraud, the link between virtual currencies / crypto-assets and other underlying crimes appears to be growing.”
The organization noted that it is not entirely clear how to apply the existing FATF rules to cryptoassets.
âThere is a need to immediately clarify how the FATF definitions and recommendations regarding customer due diligence, money or value transfer services, wire transfers, supervision and enforcement apply. to virtual currency / crypto-asset providers and associated companies. “
The organization also looked at how countries are currently dealing with issues at the national level. The table below shows the results.
Let us return to the G20 press release which contained some positive feelings.
âTechnological innovations, including the underlying crypto-assets, can bring significant benefits to the financial system and the economy in general. However, crypto-assets raise issues of consumer and investor protection, market integrity, tax evasion, money laundering, and terrorist financing.
âCryptoassets lack the key attributes of sovereign currencies. While cryptoassets do not pose a risk to global stability at this point, we remain vigilant. “
Financial Stability Board
The Financial Stability Board (FSB) has also prepared a report in preparation for the G20 meeting.
The FSB, in collaboration with the Committee on Payments and Market Infrastructures (CPMI), has established measures to monitor the implications of cryptoassets on financial stability.
In addition, the CPMI performs an analysis on payment innovations.
The International Organization of Securities Commissions (IOSCO) has created a consultation network to discuss ICOs. It explores how to solve domestic and cross-border ICO issues for investor protection. In addition, he examines regulatory topics regarding crypto-asset platforms.
The Basel Committee on Banking Supervision (BCBS) quantifies the materiality of direct and indirect banking exposures to crypto-assets. He also tries to clarify how to approach this exhibition.
Therefore, there is a considerable amount of activity, and by October there should be further clarification regarding the money laundering rules.