G20 Countries Meeting and Setting Common Standards for Cryptocurrency Regulation
Information about Financial Action Task Force (FATF) support has been discussed on the Internet recently.
FATF consists of 36 members, including G20 countries, and two international organizations. An annual private consultative forum was organized in Austria in early May this year. G20 countries 2019 and other participants in this preliminary meeting discussed the most critical issues and strategies related to cryptocurrencies. In particular, G20 countries agreed on ways to control financial transactions involving crypto-assets and approaches to reduce risks. They also considered several legal issues. Also, there were many discussions about cryptocurrencies and their role in the development of innovative technologies.
In terms of crypto-assets regulation, Japan is a leader among other G20 members. Back in December 2018, FSA announced the need to obtain permission and apply effective systems to monitor and comply with measures specified in FATF recommendations. Representatives of South Korea also announced that they would meet standards proposed by FATF and G20 countries.
However, Chainalysis Blockchain Company has expressed its doubts about proposed efforts reality. In particular, the company’s management said in its current form, FATF principles would have severe consequences for the cryptocurrency industry due to possible technical obstacles. They will prevent a lot of companies from working according to new standards. The main problem considered by G20 countries is that cryptocurrencies are designed as a p2p system without centralized management or intermediaries. For this reason, the mandatory requirement to transmit information to identify users is not always feasible from a technical point of view. In short, there is a risk new standards considered at G20 meeting will jeopardize not only the future of crypto companies but also users who turn out to be law violators. It will be necessary to create new standards adapted to the crypto sector in the future, which will take into account technical and juridical capabilities.
G20 Meeting and Cryptocurrency Issues
What is the G20 summit? This is an event attended by G20 countries representatives that have a significant impact on the world’s economy, as well as other invited participants. The main goal of this meeting is to consider some political and economic problems.
As you know, discussions about cryptocurrencies issues and their legal application and regulation began this spring. G20 countries studied FATF proposals and looked for the best options that will satisfy most countries and not harm the global economy. Press reported FATF submitted its final version of the documentation in June this year. Even before the G20 meeting, politicians from the most influential states were trying to find a compromise in matters related to cryptocurrencies. After this summit, it became known that G20 countries supported previously proposed initiatives in full. There have been many discussions and analytical articles in mass media about this event. However, G20 members assured all skeptics that the chosen system would work efficiently. Besides, it will not impede the development of modern technologies but even contribute to the improvement of this area.
What do you think about G20 countries decision? Will it affect the Bitcoin exchange rate? Will new difficulties and threats for owners of crypto assets arise? Share your opinion with other users.
The author’s bio: Thomas Glare is an analyst and researcher who studies crypto assets. The main issue that he considers in his activities is the future of cryptocurrencies. Thomas explores the prospects for their development, impact on the economy, and the possibility of financial and legal risks.