G20 Nations to Strengthen Oversight of Cryptocurrencies and Combat Money Laundering
Date: 2023-09-11 Author: Dima Zakharov Categories: IN WORLD
In a significant development, the Group of Twenty (G20) nations has come together to enhance their control over the cryptocurrency industry. This move is aimed at regulating and supervising crypto assets, while also cracking down on money laundering. The G20 leaders have expressed their commitment to implementing a roadmap for these changes by October 2023.
G20 Nations Unite for Cryptocurrency Regulation:
The G20, composed of some of the world's leading economies, has given its approval to proposals by the Financial Stability Board (FSB) regarding the regulation and oversight of crypto assets. This decision, reported by local media, signifies a global effort to bring the fast-evolving cryptocurrency industry under closer scrutiny.
In their official statement, the G20 leaders have underlined the importance of discussions among finance ministers and central bank governors of member countries, scheduled for October 2023, to execute the proposed regulatory framework.
Emphasizing the need for urgency, the G20 leaders have called for the swift implementation of a cryptocurrency asset reporting system (CARF) and amendments to the Common Reporting Standard (CRS). One of the key provisions in these discussions aims to safeguard monetary and financial stability, with a clear consensus against granting cryptocurrencies the status of official currencies or legal tender.
Combatting Money Laundering:
The G20 leaders have also pledged support for anti-money laundering (AML) efforts. They stressed the significance of countries developing and implementing effective regulatory and supervisory mechanisms to mitigate the risks associated with virtual assets.
The declaration highlights the G20's close monitoring of the rapid expansion of cryptocurrency-related systems and their associated risks. This concerted effort aims to ensure that cryptocurrency companies adhere to globally coordinated regulations, leaving them with little choice but to implement basic security measures to prevent incidents like exchange collapses.
Protecting the Financial Sector:
To regulate the cryptocurrency industry effectively, the FSB suggests isolating the financial sector from crypto-industry risks. This approach will remain in place until the cryptocurrency sphere reaches a sufficient size to pose a threat to financial stability. Achieving this goal requires robust management to avoid conflicts of interest and ensure the safety of client funds.
