Member countries of the G20 have said that cryptocurrencies do not pose a risk to the current global financial system. This is according to a communique issued by the G20 on July 22, 2018. However, they maintain their position of keeping a close vigil on activities in the cryptocurrency market. The document also states that plans are underway for an anti money laundering framework on cryptocurrencies to be launched by October 2018.
Cryptocurrency Law by October 2018
Financial Action Task Force, a global inter government agency, said in February 2018 that it plans to monitor cryptocurrencies more thoroughly in an effort to prevent money laundering. The FATF now seems to be taking action and intends to make proper regulations for all cryptocurrency exchanges as part of its global anti money laundering plan. The member countries of G20 have asked the FATF to clarify its stand on digital currencies by October 2018. In a statement, they said,
“We call on FATF to further enhance its efforts to counter proliferation financing. We commit to further our individual and collective efforts to eliminate the financial networks supporting terrorist groups.”
The Financial Stability Board, an organization whose purpose is to advise the G20 on global financial systems agrees with the G20 on monitoring digital currencies. A framework was published by the FSB on July 16, 2018 for monitoring various crypto assets. In the framework it stated that the FSB does not believe that crypto assets pose a risk to global financial security but also understands the requirement of strict monitoring due to speedy market developments.
G20 And Cryptocurrencies
In March 2018, Japan had asked the G20 to step up its efforts to prevent money laundering through cryptocurrencies. At that time, it was believed that due to differences in approach of each country it would be difficult to agree on specific global rules. Serious efforts are now being made to prevent the use of crypto assets in illegal financial affairs.
FATF will begin its discussions from June 24, 2018 on how to proceed with establishing further regulations. The existing guidelines established in June 2015 require exchanges to be registered, verify customer identities and report suspicious trading. FATF will check whether these are still applicable and what changes need to be made.
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