- G20 participants request regulators to have a multilateral approach towards digital assets
- G20 countries request regulatory agencies to pay close attention to virtual currencies
Finance ministers of the G20 are requesting the Financial Stability Board (FSB) to monitor the risks related to cryptocurrencies.
The request was made on June 9 through a document published on the website of Japan’s Ministry of Finance. The goal is to have larger control over the crypto space.
Cryptocurrencies Must Be Controlled
The G20 leaders signed the document that requests institutions and regulators to control virtual currencies and take the appropriate measures for them to operate in the market. The leaders requested the FSB and other agencies to monitor risks and consider work on additional multilateral responses.
At the same time, the statement says that technological innovations such as blockchain technology are able to deliver significant improvements to the financial system and the economy. Back in July 2018 in Buenos Aires, the G20 leaders wrote a very similar phrase to this one.
The authors of the paper were also worried about some negative effects of virtual currencies. About this issue, they wrote:
“While crypto assets do not pose a threat to global financial stability at this point, we remain vigilant to risks, including those related to consumer and investor protection, anti-money laundering (AML) and countering the financing of terrorism (CFT).”
The document requests parties to adop the Financial Action Task Force’s (FATF) Interpretative Node on cryptocurrencies. Moreover, they participant leaders were open to apply teh amended FATF standards for virtual currencies.
It is also worth mentioning that the document states that finance ministers and central bank governors welcome the work related to cryptocurrencies that is conducted by international organizations.