This year’s G20 Summit took place in Buenos Aires – Argentina, from November 30 to December 1. Government officials, together with some of the world’s largest corporations such as the World Trade Organization, the World Health Organization and the Inter-American Development Bank, gathered to discuss pressing issues. This year, one of those topics was anti-money laundering and regulatory standards for cryptocurrencies.
The Group of Twenty is made up of the EU and 19 other countries, composing the world’s largest economies. Among them, we will find the U.S, the UK, China and India.
Anti-money laundering efforts
A joint declaration was officially signed by the G20 member countries on Saturday in Buenos Aires, as reported by The Saudi Gazette. The G20 countries, as part of the declaration, have agreed to fight against money laundering and terrorism funding in accordance with the FATF (Financial Action Task Force) standards.
They agreed that agreed that crypto assets should be governed by proper international standards to achieve sustainable standards.
The G20 Countries have signed a joint declaration in Buenos Aires, where it promises to regulate #crypto & combat its use for money laundering & the financing of terrorism in line with the Financial Action Task Force (FATF) standards — @CryptoCoinsNews https://t.co/0nKGqzcsL5 pic.twitter.com/aCunWWvAY9
— The Element Group (@TheElementGrp) December 3, 2018
Section 25 of the declaration reads:
“We will regulate crypto-assets for anti-money laundering and countering the financing of terrorism in line with FATF standards, and we will consider other responses as needed.”
In addition to this, the countries will work actively to monitor the rapid digitization of the global economy. Section 26 reads:
“We will continue to work together to find a consensus-based solution to address the impacts of digitization of the economy on the international tax system with an update in 2019 and a final report in 2020.”
According to a Japanese news outlet, Jiji.com, the final documents delivered by the leaders called for a “taxation system for cross-border electronic payment services.”
What are the FATF Standards?
FATF is a policy-making organization established by the Organization for Economic Cooperation and Development (OECD) to fight money laundering and terrorist funding.
A press release was issued in July by G20 to apply anti-money laundering standards for the cryptocurrency sector by October. A regulator, the Financial Stability Boards (FSB) headed by Mark Carney, was commissioned by the forum to develop a framework for monitoring the crypto industry.
“The objective of the framework is to identify any emerging financial stability concerns in a timely manner. To this end, it includes risk metrics that are most likely to highlight suck risks, using data from public sources where available,” the FSB framework reads.
India Took the Lead
It seems that the lead on Friday was taken by India who came up with a nine-point list highlighting critical areas like fighting economic offenders, crypto assets and others.
The agenda was presented by the Indian Prime Minister Narendra Modi who called on for cooperation among the countries. The agenda read:
“FATF should be tasked to formulate a standard definition of fugitive economic offenders. FATF should also develop a set of commonly agreed and standardized procedures related to identification, extradition and judicial proceedings for dealing with fugitive economic offenders to provide guidance and assistance to G20 countries, subject to their domestic law.”
It would be interesting to see if all these measures would do any good, especially when Bitcoin was initially designed to be free from political influence and a borderless currency.
What does this mean?
While the G20 has maintained a reasonably open-minded stance towards cryptocurrency regulation over the past years, this new regulation may pose a challenge to the development of startups and established businesses.
There are two ways this can go. On the one hand, we should be wary of the road we are paving – are we going towards over-regulation? On the other hand, we can’t ignore that as things are constantly evolving in the crypto world, these may only represent the efforts of the countries to eliminate the barrier between crypto and the traditional finance sector.
Will the regulation facilitate the growth of crypto companies by providing access to legal systems and banking services, or shall we see a move towards a clampdown of initiatives?
In the framework of the G20 countries, a large portion of them has already set in place specific crypto regulations, which may lead to those that haven’t regulated yet – such as India, Argentina and Russia – under the direct influence of these international crypto market regulations.
Related post:
Thank you for sharing excellent informations. Your website is very cool. I’m impressed by the details that you have on this site. It reveals how nicely you understand this subject. Bookmarked this web page, will come back for more articles. You, my pal, ROCK! I found just the information I already searched all over the place and simply couldn’t come across. What a perfect web site.
What?s Happening i’m new to this, I stumbled upon this I have found It positively helpful and it has aided me out loads. I hope to contribute & help other users like its helped me. Great job.
I really believe that a property foreclosures can have a significant effect on the borrower’s life. House foreclosures can have a 8 to few years negative influence on a borrower’s credit report. The borrower having applied for home financing or any kind of loans as an example, knows that the worse credit rating is usually, the more hard it is to secure a decent loan. In addition, it may affect a borrower’s power to find a decent place to lease or rent, if that becomes the alternative housing solution. Thanks for your blog post.
Thank you for another informative web site. Where else may just I am getting that kind of info written in such a perfect means? I’ve a mission that I’m simply now running on, and I have been on the glance out for such information.
Hi, i feel that i noticed you visited my web site thus i came to “go back the want”.I’m trying to find things to improve my site!I assume its good enough to use some of your ideas!!
Thanks for your post on the vacation industry. I would also like to include that if you are a senior contemplating traveling, it really is absolutely crucial that you buy traveling insurance for older persons. When traveling, seniors are at greatest risk of having a medical emergency. Having the right insurance plan package for your age group can safeguard your health and provide you with peace of mind.
I¦ve learn a few just right stuff here. Certainly worth bookmarking for revisiting. I surprise how so much attempt you place to make such a excellent informative site.
I have been absent for some time, but now I remember why I used to love this web site. Thanks , I will try and check back more frequently. How frequently you update your site?
Wow, fantastic blog format! How long have you been blogging for? you made blogging look easy. The total look of your web site is fantastic, let alone the content!
One important thing is that while you are searching for a education loan you may find that you will want a cosigner. There are many situations where this is true because you should find that you do not have a past history of credit so the financial institution will require that you’ve got someone cosign the credit for you. Thanks for your post.