G20 would support FATF’s regulation & guideline for cryptocurrency!
The notable governments comprising the G20, also known as Group of Twenty countries, has made a revolutionary decision regarding cryptocurrency. According to the sources, the group of around twenty countries is openly supporting the guidelines which FATF has detailed. By the looks of it, the group comprises of 19 countries along with the European Union. On the other hand, FATF is worldwide money laundering monitoring service.
The new development came into inception during the G20 summit. Moreover, the event, G20 took place from 28 June to 29 June in Japan’s Osaka. During the forum, the G20 companies said that they would commit themselves by applying to the newly amended FATF Standards.
The benefits that come from the new guidelines
In addition to this, G20 countries will also abide by the regulations related to the virtual assets concerning anti-money laundering. In the long run, these countries would take counter measures and stop terrorist groups garnering financial benefits.
On the other hand, FATF has also released the optimum final guidelines for the cryptocurrency on the 21 June 2019. It’d compel the exchange to transfer, and collect the customer information like account number, name of the originator, & information of the location. Additionally, this would make sure of the transfer and exchange of the account number, & name of the beneficiary while transacting.
Before the summit took place, the G20 was trying to make an affirmation for holding on to the FATF guidelines. However, after the official announcement, things are finally looking like they are in motion.
How are the cryptocurrency companies viewing the guidelines?
The cryptocurrency companies such as Coinbase, Chainalysis, and Circle suggest that the implementation of the new guidelines would be expensive. Contradictorily, the guidelines need unprecedented unification from different corners of the world.
The G20 also said that they are closely monitoring and keeping tabs on the cryptocurrency industry. Staying vigilant is the present-day job description of the members of the G20. On the other hand, there is also an urgent need to take a look into the risks emerging from cryptocurrency. According to a recent survey conducted by the G20, the digital assets based on cryptocurrency don’t pose an alarming threat to the stability of global finance.
What exactly is FATF?
In simpler words, FATF is more of a watchdog, which is an intergovernmental organization that wishes to defeat financial crimes. Soon after releasing the new guidelines on the 21 June, the organizations proposed the guidelines during the summit.
The new policy from FATF would ensure that the providers of cryptocurrency assets would follow the procedures of conventional institutions. In the meantime, the V20 Summit also took place collaterally to the state-of-the-art G20 Summit.
The V20 Summit
In the V20 Summit, the national level trade associations represented VASPs by forming an association with the “worldwide unified voice.” Additionally, this also addresses the issues related to the groundbreaking and ever-changing cryptocurrency industry, such as FATF guidelines. Convenor and founder of ADCA, Ronald M. Tucker, said that they are bringing everyone to create a new body which would assist in establishing a way to engage with the governmental agencies.
The FSB, aka Financial Stability Board has also witnessed significant implications of the decentralized technologies of finance industries.The authority of Busan, the second-most populous city in South Korea, is on the verge of releasing a new cryptocurrency.