G20 Countries Start Implementing Unified Crypto Standards

As the G20 summit approaches, member countries have been discussing how to implement the standards set by intergovernmental organizations such as the Financial Action Task Force. While there may be some challenges in complying with the standards, the European Central Bank says the risks crypto assets pose to the euro area’s financial stability are manageable. 

G20 Implementing Global Standards

The G20 countries have reaffirmed their support for the Financial Action Task Force (FATF) as the global standard-setting body in areas such as anti-money laundering. They have also agreed to follow the FATF recommendations including those concerning crypto assets.

The FATF held its annual Private Sector Consultative Forum in Austria earlier this month with its members and over 300 representatives from the private sector participating. Members of the FATF are 36 countries and two international organizations including the European Commission. The FATF explained:

"The discussions focused on the mapping of virtual asset services and business models … and on the implementation of specific FATF recommendations."

A FATF meeting

In its April report to the G20, the FATF outlined its work on crypto asset standards and promised to update its guidance “to continue assisting jurisdictions and the private sector, in implementing a risk-based approach to regulating virtual asset service providers, including their supervision and monitoring,” the report describes. “This will help countries in exercising oversight of this sector.” While emphasizing various risks such as money laundering, the FATF also recognized:

"Technological innovations, including those underlying virtual assets … may deliver significant benefits to the financial system and the broader economy."

Russia Has Issues to Resolve

Among countries that have announced their plans to implement the standards set by the FATF is Russia. The country has yet to finalize the regulatory framework for cryptocurrency, which President Vladimir Putin originally said must be done by July last year. Since no crypto regulation had been introduced, the Russian president signed another order for his country’s crypto regulation to be implemented by July this year.

However, another delay may also be in the cards as the Chairman of the State Duma Committee on Financial Market, Anatoly Aksakov, has revealed that “The adoption of the law on digital financial assets is ‘stuck’ because of the requirements of the FATF,” Tass reported on May 21. Speaking at the Russian Stock Market 2019 conference, he explained that the requirements will either be implemented in the law on digital financial assets or in a separate bill, elaborating:

"The law on digital financial assets has been suspended … There were FATF decisions that require us to resolve issues related to bitcoins and so on."

The news outlet also reported first deputy chairman of the Bank of Russia, Olga Skorobogatova, indicating that the law on digital financial assets could be adopted in the Spring session. “The law on digital financial assets, on crowdfunding, etc., all these bills are in a fairly high degree of readiness,” she told the State Duma. “Colleagues from the State Duma committees are very helpful, we expect that these laws can be passed during the Spring session.” She further stressed that these laws “are extremely important for the country and will provide an opportunity to implement new projects.”

Japan Collaborating With Other G20 Countries

The host of the June G20 summit, Japan has been actively working on implementing global standards on crypto assets. Last week, the country’s House of Representatives passed a crypto bill with a number of required resolutions. According to Impress publication, one of them reads:

"We have fully grasped the regulatory trends of G20 countries, and cooperated with each country to achieve international harmony."

In April, local media reported that the Japanese government is preparing to offer a handbook to the G20 countries to help them with their own crypto regulations. This matter will be discussed at the June summit along with a wide range of regulatory measures relating to crypto assets.

In December last year, Japan’s top financial regulator, the Financial Services Agency (FSA), released a report stating:

"To manage and mitigate the risks emerging from virtual assets, countries should ensure that virtual asset service providers are regulated for AML/CFT purposes."

They should also be “licensed or registered and subject to effective systems for monitoring and ensuring compliance with the relevant measures called for in the FATF recommendations,” the report details.

Do you think the G20 countries should follow unified cryptocurrency standards?

Source from Bitcoin.com, author Kevin Helms

Relevant news: 
Domain Registrar NiceNIC.NET accept Bitcoin now
https://nicenic.net/news/messview.php?ID=21095