The world’s largest cryptocurrency Exchange representatives will sit together with Global finance leaders and global policymakers of the G20 Association in Japan later this month, according to a Financial Times report.
Circle, Coinbase, bitFlyer, Kraken, and Huobi have all been confirmed as attendees of the meeting. The Conference has been dubbed as V20, a Virtual Asset Service Providers Summit. We have also reached out to other Exchanges about the agenda of the meeting and their propositions.
Virtual Assets Provider Conference, V20 Summit
The Summit has been called in light of the new guidelines to be implemented by the FATF for VASPs (Virtual Assets Service Providers). The new proposal plans to implement a new law which requires the Exchanges to share their customer data to the relevant parties and authorities on demand like a bank. However, the Exchanges are proposing against it as it could drive them out of business as people might start leaving the Exchanges due to privacy concerns.
Moreover, the AML/KYC compliance is already in effect, which must be sufficient for regulatory concerns. The media also reported that Exchange executives also doubt the feasibility of the information-collection rule.
Ricky Li, the co-founder of Altonomy, the digital asset trading firm, said of the recommendations:
“The impact on overall market pricing is a slow burn, as we expect rising compliance costs and subsequent penalties to shut down a lot of exchanges, broker-dealers and funds over time.”
The initial report from the FSB (Financial Stability Board) suggested that cryptocurrency does not pose a severe financial risk in the world. However, according to the FATF (Financial Action Task Force), cryptocurrency posses money laundering and terrorist financing risk, which must be curbed to the maximum extent. The latest set of proposals by the FAFT will be published on June 21, 2019.
The V20 Summit will coincide with the G20 conference on June 28 and 29 2019. This will mark an important event which will decide the future of regulations of cryptocurrencies in leading economies of the world which includes the US, China, United Kingdom, Germany, France, Russia, India and so on.
Elaine Sun, chief compliance officer at Huobi Group noted that,
“Direct conversations with FATF to clarify the unique nature of the crypto industry will help to build a mutual understanding of regulatory exposure, and find industry-wide solutions to manage such exposures.”
Do you think the V20 summit will be able to bridge the gap between cryptocurrencies and world commerce or disrupt the balance even more? Please share your views with us.
Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com