G20 Finance Ministers Asked Regulatory Bodies to Assess Crypto Risks and Issue Proper Response

By Anne W. | June 10, 2019
G20 Finance Ministers Asked Regulatory Bodies to Assess Crypto Risks and Issue Proper Response

G20 finance market leaders and central bank governors have requested the FSB – Financial Stability Board – along with other standard-setting bodies – to assess crypto-related risks, and issue any necessary multilateral responses.

Specifically, after the G20 meeting in Fukuoka, Japan, a communiqué appeared on the Japanese Ministry of Finance official web page, outlining the joint request from the leaders. Per the co-signed document, the G20 leaders have asked the FSB, along with any involved organization, to come up with proper approaches to matters revolving crypto assets, and take immediate measures to handle them.

The communiqué further stated that “technological innovations, including those underlying crypto-assets, can deliver significant benefits to the financial system and the broader economy” – a perspective similar to one expressed in a document, published after the G20 summit – took place in Buenos Aires in July 2018 – concluded.

After sharing a positive attitude towards such emerging technologies, the document raised some potential negative effects of the tech.

“While crypto assets do not pose a threat to global financial stability at this point, we remain vigilant to risks, including those related to consumer and investor protection, anti-money laundering (AML) and countering the financing of terrorism (CFT).”

The document claimed that all entities involved are waiting for the “Interpretive Note and guidance on crypto assets” – drafted by the Financial Action Task Force’s (FATF) – to come into effect, “at its [FATF’s] plenary later this month”. The G20 leaders further confirm their devotion to practice the recently renewed FATF standards for crypto.

Moreover, the G20 leaders highly appreciate any effort, aimed at establishing proper crypto legislation by any international

al regulatory entities, the International Organization of Securities Commissions and the FSB.

Earlier, part of the agenda for this year’s G20 meetings has reportedly included a framework to combat money laundering and terrorism financing risks linked to cryptocurrency.

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