G20 releases a statement calling for continued vigilance on crypto-assets

09 Jun, 2019
by David Borman
Regulation
G20 releases a statement calling for continued vigilance on crypto-assets

Previously Chepicap reported that there was hope that key decisions would be made surrounding Anti-Money Laundering at the G20 meetings being held currently in Fukuoka, Japan. However, now a joint statement has been released which gives little in the way of further policy development, and instead makes a general call to "remain vigilant."

The statement was released on June 9th and covers a wide range of observations and decisions made by the members of the G20 summit. The one of interest to us is found under #13:

"Technological innovations, including those underlying crypto-assets, can deliver significant benefits to the financial system and the broader economy. While crypto-assets do not pose a threat to global financial stability at this point, we remain vigilant to risks, including those related to consumer and investor protection, anti-money laundering (AML) and countering the financing of terrorism (CFT). We reaffirm our commitment to applying the recently amended FATF Standards to virtual assets and related providers for AML and CFT. We look forward to the adoption of the FATF Interpretive Note and Guidance by the FATF at its plenary later this month. We welcome IOSCO’s work on crypto-asset trading platforms related to consumer and investor protection and market integrity. We welcome the FSB’s directory of crypto-asset regulators, and its report on work underway, regulatory approaches and potential gaps relating to crypto-assets. We ask the FSB and standard setting bodies to monitor risks and consider work on additional multilateral responses as needed. We also welcome the FSB report on decentralized financial technologies, and the possible implications for financial stability, regulation and governance, and how regulators can enhance the dialogue with a wider group of stakeholders. We also continue to step up efforts to enhance cyber resilience, and welcome progress on the FSB’s initiative to identify effective practices for response to and recovery from cyber incidents."

The statement is rather lengthy, but in general it says that they do not currently find crypto to be a threat to the global financial system and they welcome various forms of monitoring being done by organizations worldwide. No meaningful clarity is provided, which is likely disappointing to some.

Will coming years see a more robust response from the G20 or will individual governments need to step up to increase clarity on regulations? Stick with Chepicap for all updates!

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