Ministers and central bank governors from the Group of 20 (G20) major economies met this past weekend in Fukoka, Japan, ahead of the meeting of the leaders of the G20 in Osaka on June 28-29.
During the meeting, they showed support to the ‘draconian’ KYC-related suggestions that would affect crypto investors and projects operating in the space.
The communiqué (excerpted below) reiterated previous statements that crypto-assets can deliver “significant benefits to the financial system and the broader economy” but governments need to remain vigilant, despite this new type of assets still does not pose a threat to global financial stability. Also, not mentioning crypto specifically, the communiqué repeated that they welcome “the recent progress on addressing the tax challenges arising from digitalization” and they “will redouble our efforts for a consensus-based solution with a final report by 2020.”
The following is the full text from the communique as posted to the Ministry of Finance of Japan’s website.
“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). We reaffirm our commitment to applying the recently amended FATF Standards to virtual assets and related providers for AML and CFT. We look forward to the adoption of the FATF Interpretive Note and Guidance by the FATF at its plenary later this month. We welcome IOSCO’s work on crypto-asset trading platforms related to consumer and investor protection and market integrity. We welcome the FSB’s directory of crypto-asset regulators, and its report on work underway, regulatory approaches and potential gaps relating to crypto-assets. We ask the FSB and standard setting bodies to monitor risks and consider work on additional multilateral responses as needed. We also welcome the FSB report on decentralized financial technologies, and the possible implications for financial stability, regulation and governance, and how regulators can enhance the dialogue with a wider group of stakeholders. We also continue to step up efforts to enhance cyber resilience, and welcome progress on the FSB’s initiative to identify effective practices for response to and recovery from cyber incidents.”
As reported by Cryptonews.com, the intergovernmental Financial Action Task Force on Money Laundering (FATF) prepared a draft recommendation, which suggests that all virtual asset service providers (VASPs) will have to be licensed and do a KYC (know your customer) check on every single transaction, incoming or outgoing, that is above either EUR 1,000 or USD 1,000. However, this part of the draft, deemed as ‘draconian‘ by the industry, is not guaranteed to make it into the final version, and will be discussed at the G20 meeting in the end of June.
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