Recently, the G20 group of nations reaffirmed it is going to adjust with some standards for AML or anti-money laundering, and CTF or countering the funding of terrorism set to be finalized by the FATF or Financial Action Task Force during June.
G20 adjusting with AML and CTF this month
The governors of the central bank and the finance ministers from the G20, who actually met in Fukuoka, Japan, during the weekend, committed to applying the rules released on the official Ministry of Finance website on Sunday.
The standards of FATF are actually expected to set robust operating procedures for the crypto exchanges, going far beyond the necessary KYC or know your customer rules which most of the significant exchanges now abide by.
Additionally to verifying, as well as keeping records of the identities of their users, the exchanges, as well as other service providers are going to have to pass customer information to one another when transferring funds, just like the banks are required to do – a procedure which is called the “travel rule” in the United States.
Unrealistic and harmful expected changes
Chainalysis, which is a blockchain analysis firm, has argued in recent times that the expected changes are going to be unrealistic, as well as harmful for the crypto industry.
However, the G20 is also considering the threat from crypto assets quite low, and it recognizes their potential too. In the communiqué, the group said that the technological innovations, including the ones that underline crypto-assets, may deliver major benefits to the financial system, and the broader economy too.
While crypto assets aren’t a threat to the global financial stability at this precise point, they are still vigilant to risks, including the ones related to the investor and consumer protection, AML, and CFT.
Seeking possible additional measures like FSB
Moreover, it is also seeking reasonable additional measures, calling for the FSB or Financial Stability Board, and other standard-setting bodies, to monitor the risks, as well as consider work on additional multilateral responses as needed.
The G20 actually welcomed the directory of FSB of crypto asset regulators, published during April of this year, and its report on ongoing work, potential “gaps” and regulatory approaches in regulation of crypto assets.
Finally, G20 also addressed the problem of hacks in the crypto space, saying that they continue stepping up efforts to improve cyber flexibility, and also welcome progress on the initiative of FSB to recognize effective manners for a response to, and even recovery from cyber incidents.