The Crypto G20 summit next week will focus on increasing the efforts to protect the consumer interests through AML and KYC requirements. The FATF will also report its finding on keeping from the use of cryptocurrency for money laundering.
2018 G20 Buenos Aires summit, crypto agenda: KYC and AML
Next week, the G20 meeting in the Buenos Aires city of Argentina, will host 29 finance ministers, 20 central bank governors and 10 heads of international organizations. One of the agendas of the meeting are cryptocurrencies as stated:
“The technology behind crypto assets has the potential to promote financial inclusion. At the same time, however, it is important to analyze its implications to financial stability, tax evasion and financing illegal activities.The issue is an important item on the meeting agenda; delegates will consider a common response that would mitigate the risks without discouraging innovation.”
The focus of the meeting seems to be, know your customer (KYC) and anti-money laundering (AML) requirements that are the factor of concern for the global regulators as well.
Both of these requirements are usually applied by the exchanges but according to the Japanese authorities, a few regulators are not fulfilling these requirements. Recently, Tokyo licensed numerous exchanges but others are still slow on the move. A few days back, the European Commision also raised the concern of AML.
An official was reported as saying:
“Discussions will focus on anti-money laundering steps and consumer protection, rather than how cryptocurrency trading could affect the banking system.”
He further emphasized:
“The general feeling among the G20 members is that applying too stringent regulations won’t be good.”
Different mindsets and FATF on money laundering issues
Given the different approaches are taken by the different countries, the point of concern here seems to be the low expectation for the consensus.
The crypto industry has an increased level of competition standards for sure but due to the regulators being not fast enough in licensing the entrants is affecting the competition and consumer protection.
The chairman of the BIS committee on payments and market infrastructure stated that:
“Any discussion in the G20 next week will be likely to be forward-looking, discussing the pros and cons of regulation, but don’t expect concrete action, it’s more about comparing experiences so far.”
Furthermore, the Financial Action Task Force (FATF) which is a 37-nations group will be reporting to the G20 on ways against the use of cryptocurrencies for money laundering.
The outcome of the meeting remains to be seen through the way scandals, scams and money management is rampant in the industry, legitimacy, and accountability needs to be introduced and improved.
What are your views on this meeting and its agenda? Let us know below!