Yesterday, the G20 issued a joint communique outlining shared objectives for the group of the larget 20 economies on the earth.
The precise occasion is being hosted by Saudi Arabia with conferences ongoing.
The doc, embedded beneath, acknowledged the worth of “digitalization of the financial system” together with monetary companies.
“… technological improvements can ship vital advantages to the monetary system and the broader financial system and we help the work on framing supervisory and regulatory points for the digital period,” acknowledged the communiqué.
The doc stated it was essential to “think about the implications related to the rising entry of Large Tech in finance,” pointing to companies like Tencent or Amazon that proceed to supply monetary companies as soon as solely the realm of conventional financial institution companies.
The G20 doc states that they “stay vigilant to potential dangers arising from monetary improvements.”
Dangers embrace cash laundering, systemic considerations, macroeconomic implications and “financial sovereignty points” (suppose Libra).
To cite the doc:
“Constructing on the 2019 Leaders’ Declaration, we urge international locations to implement the lately adopted Monetary Motion Process Power (FATF) requirements on digital belongings and associated suppliers. We reiterate our assertion in October 2019 concerning the so-called ‘international stablecoins’ and different related preparations that such dangers have to be evaluated and appropriately addressed earlier than they start operation, and help the FSB’s efforts to develop regulatory suggestions with respect to those preparations. To that finish, we look ahead to reviews by the FSB, IMF, and the FATF and welcome the FATF’s assertion that its AML/CFT requirements apply. We acknowledge the necessity to improve international cross-border cost preparations to facilitate lower-cost and swifter transfers, together with for remittances. We ask the FSB, in coordination with the Committee on Funds and Market Infrastructures (CPMI) and different related standard-setting our bodies and worldwide organizations, to develop a roadmap to reinforce international cross-border cost preparations by October 2020.”
The FATF journey rule requires VASPs or digital asset service suppliers to doc, and preserve, information on all purchases and gross sales of cryptocurrency. This implies fundamental info like all figuring out info for crypto transactions. Compliant platforms and crypto exchanges that search to proceed working are implementing these necessities now.
G20 Communiqué Closing 22-23 February 2020 Saudi Arabia