A joint declaration signed in Buenos Aires on Saturday by all G20 nations has produced a decision which will be interesting to the cryptocurrency world.
The statement affirms that an open financial system is crucial to support economic growth but also calls for international standards to regulate new technologies such as cryptocurrency.
The G20 members agreed to work on international effort to regulate cryptocurrencies in line with standards stipulated by the Financial Action Task Force (FATF), an intergovernmental organization launched in 1989.
“We will continue to monitor and, if necessary, tackle emerging risks and vulnerabilities in the financial system; and, through continued regulatory and supervisory cooperation, address fragmentation. We look forward to continued progress on achieving resilient non-bank financial intermediation,” the G20 leaders proclaimed.
“We will step up efforts to ensure that the potential benefits of technology in the financial sector can be realized while risks are mitigated. We will regulate crypto assets for anti-money laundering and countering the financing of terrorism in line with FATF [Financial Action Task Force] standards and we will consider other responses as needed.”
FATF stands for Financial Action Task Force, an OECD organization and policy-making body created by the G7 in the late ’80s to combat money laundering, with competences extended to include terrorism financing since 2001. They usually work by setting up standards and promoting their implementation.
It appears as if their participation was requested by India, one of the countries with the toughest regulation on crypto.
The declaration declares that all G20 countries are to work on some proposals and discuss them further when they meet next year in Japan. Reportedly, they intend to have a final version by the year 2020.