Finance ministers and heads of central banks from the G20 group turned to the Financial Stability Board (FSB) and international organizations to monitor the risk related to cryptographic assets. The request was made in a shared communiqué, published on the website of the Japanese Ministry of Finance.
Cryptocurrencies might be a threat
The announcement was published after the G20 meeting in Fukuoka, Japan
. Members uphold a previous statement that crypto-assets may bring "significant benefits to the financial system and to the whole economy". Governments must remain vigilant, though, because crypto currencies might still be a threat to the global financial stability:
"Currently, cryptographic assets do not pose a threat to global financial stability, but we remain vigilant when it comes to risks, including the risk related to consumers and investors protection, anti-money laundering (AML) and counteracting the financing of terrorism."
The leaders who signed the request claim that they are urging the appropriate institutions to take greater account of cryptographic assets and to consider adequate actions:
"We are asking the FSB and standard setting bodies to monitor the risks and to consider working on additional many-sided responses if necessary."
G20 members support the new FATF standards
Later in the announcement, the parties involved confirm their commitment to apply the revised FATF
standards for cryptography. FATF or Team for anti-money laundering, prepared a draft of changing regulatory standards. The new regulations would require the exchange
and gathering of information about where and to whom the assets are sent. This goes beyond the basic principles of KYC.
Apart from verifying and maintaining identity records of users, exchanges and other service providers would be required to provide to each other information about clients during the transfer of funds. However, the Industry representatives argue that this requirement would be burdensome, and in many cases even unworkable. What is more, new regulations could be detrimental to users' privacy. The document also states that the participants of the meeting welcome with delight the work on cryptography carried out by international regulators, the International Organization of Securities Commissions and the FSB.
The meeting in Fukuoka took place shortly before the G20 gathering, scheduled for 28 and 29 June in Osaka
. The main topics of the upcoming event are the issues of money laundering and KYC policy.