Following their joint declaration committing to regulate crypto assets, the G20 countries are now preparing to set crypto policies at the upcoming summit. Several international organizations have contributed resources and are actively working to help shape the regulations.
G20 Prepares to Discuss Crypto Policies
The upcoming G20 summit will be held in Osaka, Japan, on June 28 and 29. Participants are 19 member countries, the European Union, guest countries and a number of international organizations. Following the members’ joint declaration committing to regulate crypto assets for AML and CFT purposes, several standard-setting bodies have contributed resources to help the G20 set crypto policies. According to Japanese media, the countries are expected to agree upon new crypto-related regulations at the summit.
The G20 has reaffirmed its support for the Financial Action Task Force (FATF) as “the global anti-money laundering, counter terrorist financing, and proliferation financing standard-setting body,” the FATF described in its report submitted to the G20 last week. The G20 has additionally asked the organization to clarify how its standards apply to “virtual asset activities.” Responding to this request, the FATF confirmed that “Jurisdictions should apply a risk-based approach to virtual assets” and related activities. Promising to issue new guidelines in June, it elaborated:
At a minimum, virtual asset service providers should be required to be licenced or registered in the jurisdiction where they are created, or … where they have their place of business.
The FATF also recommends that “Virtual asset service providers should be supervised or monitored by a competent authority/ies (not a self-regulatory body)” and “Countries should provide international cooperation in relation to virtual assets and virtual asset service providers.”
The Financial Stability Board,