According to a report published by Saudi Gazette, G20 nations are set to regulate cryptocurrencies in line with Financial Action Task Force (FATF) standards. Already a joint declaration has been signed by the countries in the recently held meeting in Buenos Aires. On top of regulation, the countries aim to combat crypto use in financing terrorism and money laundering.
A section of the declaration reads:
“We will regulate crypto-assets for anti-money laundering and countering the financing of terrorism in line with FATF standards, and we will consider other responses as needed.”
FAFT was formed to fight money laundering and financing of terrorism
The Financial Action Task Force (FAFT) was created by the Organization for Economic Co-operation and Development (OECD). Its primary objective is to make policies that fight the funding of terrorists and money laundering.
Earlier this year, the FAFT digitised to discuss how it would introduce binding rules that are supposed to govern crypto exchanges globally.
The declaration also states that other responses will be considered. Adding that the nations will continue to monitor the global economy which is being digitized at such a quick pace. It will also “seek a consensus-based solution to address the impacts of the digitization of the economy on the international tax system with an update in 2019 and a final report in 2020.”
The G20 made their plan to regulate cryptocurrencies known in July through an official statement. At the time it had sought to apply anti-money laundering rules to the crypto industry by October. Adding that its member states would continue to monitor the sector. However, it noted that the industry didn’t pose a financial risk.
The Financial Stability Board (FSB) had been tasked by the forum to develop the framework for monitoring the crypto sector while bringing sanity back to the markets.
Now that the G20 is set to regulate cryptocurrencies, what implication could this have on the industry? Share your thoughts in the comment section below.