The leaders of all G20 nations are in support of the Financial Action Task Force’s (FATF) proposition to overhaul global regulations in relation to cryptocurrencies.
The G20 summit took place in Osaka, Japan last week. The international forum was comprised of 19 nations including the likes of the United Kingdom, the United States, China, India, and representatives from the European Union.
Days after the summit, G20 leaders issued a joint declaration in which they pledged support for the FATF’s recommendations regarding the regulation of crypto assets.
The declaration states that “while crypto-assets do not pose a threat to global financial stability”, the G20 leaders are “closely monitoring developments and remain vigilant to existing and emerging risks”.
It continued: “We welcome ongoing work by the Financial Stability Board (FSB) and other standard setting bodies and ask them to advise on additional multilateral responses as needed.
Shinhan, 2nd biggest bank in South Korea, is tightening its policies on crypto exchanges. Special teams will be created to monitor accounts.
This indicates G20 member countries are moving towards regulation, following the recommendation of FATF.https://t.co/6K0aZbYQ1Z
— Joseph Young (@iamjosephyoung) July 1, 2019
“We reaffirm our commitment to applying the recently amended FATF Standards to virtual assets and related providers for anti-money laundering and countering the financing of terrorism. We welcome the adoption of the Financial Action Task Force (FATF) Interpretive Note and Guidance.
“We also welcome the FSB’s work on the possible implications of decentralised financial technologies and how regulators can engage other stakeholders. We also continue to step up efforts to enhance cyber resilience.”
Aside from the potential risks of money laundering and financing of terrorism, US regulator the SEC and the UK’s FCA have both written guidelines in relation to the volatility of cryptocurrencies in an attempt to safeguard investors.
The SEC in particular has clamped down on a number of crypto companies over the past year, with Airfox and Paragon being forced to refund ICO investors and re-register as securities.
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