The assembly of 20 biggest economies of the world, G20, has decided to announce regulations on cryptocurrencies to counter financial terrorism and money laundering in their last meeting. The members are now discussing how to devise the standards that were set by the FATF as the next G20 summit is approaching, FATF is an intergovernmental organization. G20 has planned to shadow the rules set by FATF for crypto assets.
As per FATF, cryptocurrencies are separate from fiat currencies, or legal tender of the nation and hence must be treated as an asset and not currencies.
The G20 nations include some of the leading economies like China, India, EU, US, and the UK. They have agreed to the fact that creating international standards for crypto assets is necessary for its sustainable growth. As per reports, the member countries will remain committed to the agreed financial reform agenda.
They may face some challenges while complying the standards. As per the Central Bank of Europe, the threat posed by the crypto asset to the financial constancy for European nations is manageable.
Earlier this month in Austria FATF has held its yearly PSC Forum meeting. In the conference, more than 300 representatives and FATF members were present. Among its member, two international organizations, including European commission and 36 nations, are present.
In the meeting, the discussion was on the mapping of virtual currencies and how to implement FATF standard was focused.
So far, policymakers and banks around the globe were slow to accept cryptocurrencies. According to them, cryptocurrency is mainly used for tax evasion and illegal cross border transactions.
In the last meeting of FATF with G20 countries, it was committed by FATF to continue guide jurisdiction and private sectors regarding cryptocurrencies. Especially in the areas where risk is involved regarding the service provider of virtual assets. It will also continue to supervise and monitor the crypto assets for these countries.
FATF recognizes that crypto assets play a significant part in money laundering, but the technological innovation underlying these assets can offer significant benefit to the financial system and broader economy.
The next G20 summit is going to be held in Japan. The host country is working actively to implement the global standard for crypto assets. Although Russia has not yet applied measures set by FATF but is looking forward to implementing it soon, South Korea has announced several times before to comply with the unified regulatory standard for crypto the progress report has to be summited in the upcoming G20 summit to be held in June.