By The countries which form part of the G20 recently signed a joint declaration in Buenos Aires, promising to regulate cryptocurrency & combat their use for money laundering and acts of terrorism in line with Financial Action Task Force standards.
Section 25 from the declaration reads as follows:
“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.”
The FATF was founded by the Organisation of Economic Co-operation and Development (OECD) in order to act as a policy-creating organization in order to combat money laundering & terrorist financing. The FATF, earlier this year began discussions in order to find ways and create binding rules which could govern all digital exchanges globally.
Also coming from the G20 declaration was the fact that “other responses” would be put under consideration as needed, adding that the G20 countries would continue to monitor the current global economic ecosystem which as we know continues on a rapid path to digitization adding that they:
“would seek a consensus-based solution to address the impacts of the digitization of the economy on the international tax system with an update in 2019 and a final report in 2020.”
Back in July saw the first time that the G20 forum issued a communique, in an effort to rollout anti-money-laundering standards for the crypto industry by October. Back then they stated that all member states would continue their work in monitoring the industry.
The forum also commissioned its current regulator, the Financial Stability Board (FSB) lead by one Mark Carney, who is the current Governor of the Bank of England and an avid fan of iron-clad monitoring of digital markets in an effort to develop a comprehensive framework for doing this. The watchdog has also published a concise set of metrics which could be used in order to properly monitor and bring some order to the markets. This FSB framework as developed along with the Committee on Payments and Market Infrastructures.
Lastly, an excerpt from the FSB framework reads as follows:
“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.”
Could this be the good news the crypto sector needs? Could global regulation truly see the beginning of the end for money laundering and other illicit activities? Let us know your thoughts.
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