G20 and FATF to Regulate Crypto

The meeting of countries-members of G20 in Buenos Aires, brought a joint declaration of regulating cryptocurrencies. More specifically the goal will be to battle money laundering and terrorism financing as set by the standards of the Financial Action Task Force (FATF) and written specifically in section 25 of the declaration:

“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.”

FATF was created to act as the tip of the spear when it comes to fighting money laundering and terrorism financing by the Organization for Economic Co-operation and Development (OECD) and has this year set its sights on creating rules regarding crypto exchanges around the world and trying at the same time to adapt to the new market and needs that come with cryptocurrencies bloom.

As economy worldwide enters a digital age, the G20 considers other “responses” while each country will monitor their own economy additionally to the global industry and solutions will be sought out to address this change like an international tax system until 2020. In the meantime the Financial Stability Board has been assigned with presenting a framework of metrics to monitor and sanction the market, to identify risks and financial instability concerns in a timely manner. The governor of Bank of England,who is currently the chairman of FSB stated further on this:

“While the FSB believes that crypto-assets do not pose a material risk to global financial stability at this time, it recognizes the need for vigilant monitoring in light of the speed of market developments.”

 

 

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