G20 delays its crypto-anti money laundering measures to October

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by | 23rd July 2018 | 0 comments

On Sunday, 22nd July, the meeting of financial heads in Argentina was concluded by the decision to hold onto the global club of wealthiest economies, the G20, until autumn of this year before announcing any certain cryptocurrency measures.

Originally a deadline date of July was set by the consultancy intergovernmental organization, wherein it demands results wants to from the ongoing review of counter-terrorist financing (CTF)  and anti-money laundering (AML) standards implemented by the global standard-setting body, the Financial Action Task Force (FATF).

The summit of finance ministers and central bank governors held on 21-22 marks the second one under Argentina’s 2018 G20 presidency. As the first one was held back in March, where the group asked for global implementation of FATF standards in regards to cryptocurrency, the group had also passed the order to analyze how its existing requirements can be applicable to digital coins. A July-deadline was set by Argentina’s central bank in which it demanded “extremely concrete, and very accurate recommendations”.

On Sunday via a communique the group published the following statement: “At this time we would like to repeat our March commitments regarding the application of the FATF standards and we request the FATF to provide a clarification in October 2018 stating how its standards would apply to crypto-assets”

At present virtual currencies does not seem to risk the financial stability in any way, however, just for precautionary measures, the G20 financial heads said that they would continue their “vigilant” monitoring of cryptos mostly because these assets could be used for illegal activities.

Notably, In the July communique, G20 again claimed that digital coins are not money and also reused the term ‘crypto-assets’ rather than ‘cryptocurrency’. Although, the group did heap praise for the technology on which cryptocurrency works, i.e. Blockchain.

“The financial system and in turn broader economy can enjoy significant benefits with the help of technological innovations like the underlying crypto-assets. However, crypto-assets do raise several issues related to investor and consumer protection, tax evasion, terrorist financing, market integrity, and money laundering.”

Elsewhere, The other international standard-setting body, the Financial Stability Board (FSB), announced a framework for monitoring crypto-assets, yet again, ahead of the upcoming meeting set to take place in Buenos Aires.

 

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