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The G20 countries agreed to regulate cryptocurrencies in line with the Financial Action Task Force (FATF) standards in the second session of the summit held in Buenos Aires, Argentina.
"We will regulate the crypto-assets for money laundering"
On Saturday, a joint statement was officially signed by all the G20 nations, reports The Saudi gazette. The document recognizes that a "necessary reform" is necessary given the dizzying pace of the "digitization" of the global economy.
In relation to cryptocurrencies or "crypto-assets" as indicated in the document, the G20 has accepted a regulatory approach in line with FATF standards. Section 25 of the official declaration states:
We will regulate the crypto-assets for money laundering and fight terrorist financing in line with FATF standards and consider other responses if necessary.
Furthermore, countries will work together and monitor the digitization of the global economy that is taking place at a rapid pace. An extract from section 26 reads:
We will continue to work together to seek a consensus-based solution to address the impacts of digitization of the economy on the international tax system with an update in 2019 and a final report in 2020.
Bitcoinist last week he reported that the United States took the first action against two "facilitators" of the Iranian ransomware. The OFAC has published two Bitcoin portfolio addresses that warn of the cryptocurrency and the financial communities that anyone could negotiate with the accused could be subject to secondary penalties.
However, it is still doubtful whether these measures will prevent Bitcoin and cryptocurrency transactions at the protocol level. Indeed, Bitcoin was intentionally designed to be a form of censorship-resistant currency, without borders and politically.
G20: India asks to fight "economic fugitive criminals"
India seems to have led the initiative on Friday, presenting a nine-point list that urges the G20 countries to fight "economic fugitive criminals" that also includes crypto-assets such as Bitcoin and other cryptocurrencies, such as The Hans India relationships.
The agenda was presented by Indian Prime Minister Narendra Modi, who asked the FATF to assign priorities and establish international cooperation. This would ensure that member countries work closely together and the respective financial information units share the information needed to track offenders.
"The FATF should be mandated to formulate a standard definition of economic fugitive criminals.The FATF should also develop a set of agreed and standardized procedures related to identification, extradition and judicial proceedings to deal with economic offenders. fugitives to provide assistance and guidance to the G20 countries, without prejudice to their national laws, "reads the agenda.
According to the FATF website:
The Financial Action Task Force (FATF) is an intergovernmental body set up in 1989 by the ministers of its member jurisdictions. The objectives of the FATF are to establish standards and promote the effective implementation of legal, regulatory and operational measures to combat money laundering, terrorist financing and other threats related to the integrity of the international financial system. The FATF is therefore a "decision-making body" that works to generate the necessary political will to implement national legislative and regulatory reforms in these areas.
At the beginning of July, Bitcoinist referring to the first session held in Buenos Aires, where member states stopped before establishing a regulatory framework. Nevertheless, the G20 has admitted that "crypto-assets can offer significant benefits" and do not pose a risk to global financial stability. However, members agreed to monitor their progress and develop a comprehensive regulatory approach in the near future, citing concerns about evasion and money laundering.
"Cryptographic assets, however, raise issues related to the protection of consumers and investors, market integrity, tax evasion, money laundering and terrorist financing," the report reads. "Crypto-assets lack key attributes of sovereign currencies While cryptocurrencies do not at this point pose a global financial stability risk, we remain vigilant."
Will the G20 countries be able to regulate cryptocurrencies based on FATF standards and global cooperation? Share your thoughts below!
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