The G20 leaders are supporting the Financial Action Task Force’s recommendations for sweeping cryptocurrency regulations worldwide.
The FATF, an intergovernmental agency that develops policies to combat money laundering, published new guidelines on June 21 that say crypto transactions made between “virtual asset service providers” (VASPs), including exchanges, should include detailed information about the sender and recipient.
In a declaration published after the G20 Osaka Summit on June 28-29, the leaders of the world’s most powerful countries signaled their support for the new recommendations.
“While crypto-assets do not pose a threat to global financial stability at this point, we are closely monitoring developments and remain vigilant to existing and emerging risks. We welcome on-going work by the Financial Stability Board (FSB) and other standard setting bodies and ask them to advise on additional multilateral responses as needed.
We reaffirm our commitment to applying the recently amended FATF Standards to virtual assets and related providers for anti-money laundering and countering the financing of terrorism. We welcome the adoption of the Financial Action Task Force (FATF) Interpretive Note and Guidance.”
The FATF conducts evaluations on how well the member countries implement its guidelines, and it can blacklist non-compliant jurisdictions. Blacklisting can seriously hamper a jurisdiction’s ability to participate fully in the international financial system.
The G20 is an international forum for 19 countries and the European Union to discuss matters relating to international financial stability.