G 20 to enforce New FATF Rules on Cryptocurrencies

 

G20

Last week, Numerous governments along with major central banks took part in the G20 forum. This year the forum took place in Fukuoka, Japan from June 8 to June 9.

Furthermore, it has been reported that G 20 nations and Central Bank governors have agreed to abide by rules released in a communique from the summit. Additionally, it was mutually agreed on enforcing standards for Anti-Money Laundering (AML) and Countering the Funding of Terrorism (CTF) as explained by the Financial Action Task Force (FATF).

More importantly, the Financial Action Task Force is planning on setting tough operating procedures for exchanges. The new rules will reportedly go far beyond the “Know your customer” or KYC concept that major exchange platforms operate under.

If applied, the new operating procedures will allow the verification and record of customers’ identities. Also under the new Standards, exchange platforms are obliged to share customers information with each other during crypto transactions.

Nevertheless, some believe that the new procedures could be harmful to the crypto industry when implemented.

Technological innovations, including those underlying crypto-assets, can deliver significant benefits to the financial system and the broader economy. While crypto-assets do not pose a threat to global financial stability at this point, we remain vigilant to risks, including those related to consumer and investor protection, anti-money laundering (AML) and countering the financing of terrorism (CFT).

the G 20 stated in the communique as they refuted concerns against the expected changes.

Additionally, G 20 members believe that crypto assets have great potential and further reiterated that the technology poses no threat to the global financial sector.

In a similar fashion the forum and its leaders looking for additionally measures, as the requested the Financial Stability Board (FSB) along with other regulatory entities “to monitor risks and consider work on additional multilateral responses as needed.”

 

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Henry-Claude Madiba

Renewable energy engineer in training. I am only interested in two things, blockchain technology and contributing to making the world a livable place for the next generations.

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