G20 countries are preparing to comply with international standards for the regulation of cryptocurrency31.05.2019
As the G20 summit approaches, the G20 member countries are discussing the possibility of introducing common standards recommended by the FATF in the cryptocurrency space.
G20 summit participants are discussing how to implement standards and implement intergovernmental organizations like the FATF. Although there may be some problems with their observance, the ECB states that the risks to financial stability associated with cryptocurrency can be guaranteed.
In a subsequent report, the FATF provided recommendations on cryptocurrency regulation within the framework of “assisting jurisdiction and the private sector in implementing fundamental approaches to regulating the services of providers of virtual assets, including their supervision and monitoring,” which “will help member countries to use supervision of this sector”.
The FATF noted the use of cryptocurrencies for money laundering, but recognized the potential of “technological innovations that form the basis of virtual assets that can bring significant economic efficiency.”
Japan, which hosts the G20 summit in June, is actively working to implement global cryptocurrency regulation standards: Parliament approved amendments to the law on financial instruments and exchanges, as well as the law on financial calculations, which approve cryptocurrency regulations. Among the comments of the innovations: "We are fully aware of the regulatory trends of the G20 countries and cooperate with each country to achieve international agreement."
The Japanese government is ready to offer guidance to the G20 member countries in developing their own cryptocurrency regulation rules. This issue will be discussed at the June summit.
South Korea states several times that it will meet the unified standards of cryptocurrency space. At the plenary meeting of the Financial Stability Board (FSB), where 24 financial institutions and 11 international organizations discuss international standards in the field of cryptocurrency, the chairman of the financial authority of the country Choi-Zhon-ku (Choi Chong-ku) represents free international cooperation.
“Each country needs to implement international standards prepared by the FATF, which will minimize non-compliance with regulatory requirements,” he said.
However, following the FATF recommendations is associated with a number of problems, Chainysis’s developer of the blockchain analysis believes:
“The FATF Guide, in which it is presented today, will have serious consequences for the cryptocurrency industry. Cryptocurrency companies meet these standards. ”
Reports that cryptocurrencies were originally designed as a peer-to-peer financial system that does not have a central regulatory authority and intermediaries, the company claims that the transfer of information identifying the parties does not technically exist.
Regulation of the FATF cryptocurrency can lead to so-called “unintended consequences” due to the lack of infrastructure for transferring information between cryptocurrency sources and the inability to change how the blockchain works.
“Improving the efficiency of cooperation, increasing the activity of cooperation with decentralized exchanges,” emphasizes the Chain Analysis. “Such measures will reduce transparency and accessibility for law enforcement today.”
In turn, the ECB examines the potential implications of the use of cryptocurrency for monetary policy and the risks that may be to infrastructure, payments, and a stable financial system.
The ECB report states that cryptoactive assets do not have a significant impact on the real economy. ” However, financial institutions should have direct management mechanisms.