The V20 Summit, a Virtual Asset Summit that was held on 28-29th June in Osaka, Japan has attempted to identify the challenges and guidelines VASPs must adhere to. VASPs or Virtual Asset Service Providers primary includes cryptocurrency Exchanges, custody firms, wallet providers, etc.
The ‘Travel Rule’ Imposition Proposal by FATF
In their declaration to develop and protect the world economy, the leaders of the G20 Summit recognized the need for ‘digitalization’ and the potential of blockchain and crypto-assets. The only roadblock around cryptocurrencies currently involves security and money laundering issues.
The Summit was organized to address the new ‘travel rule’ that is in the process of being ratified by the G20 to be imposed on cryptocurrency transactions. The ‘travel rule’ has been retained in the guidelines concluded by FATF. It requires the Exchanges to record and share all the relevant transaction data with each other and also provide regulatory oversight inclusion.
Reportedly, Tom Neylan, Senior Policy Analyst at Financial Action Task Force (FATF), addressed the representatives of the cryptocurrency industry. According to Malcolm Wright, Chief Compliance Officer, international speaker and author who attended the conference noted in a blog post,
“Over the course of two days, the FATF through the outstanding Tom Neylan provided supportive input and strong guidance on the expectation for the industry. Meanwhile, workshops provided the forum through which the industry could discuss thoughts towards solutions.”
MOU Signed by National Trade Associations for Blockchain and Crypto
Furthermore, Malcolm also confirmed that while the V20 summit did not end with a firm decision, it initiated a not-for-profit organization of VASPs. National trade associations for cryptocurrency signed an MOU for the formation of an organization which will provide a ‘globally unified voice for cryptocurrencies.’
The trade Associations for blockchain and cryptocurrency from Australia, Japan, Singapore, Taiwan, Korea, and Hong Kong signed the MOU. Roger Wilkins AO, the former FATF President, was present to witness the signing ceremony.
Anson Zeall, co-convenor of the V20 and Chairman of Singapore ACCESS, told the media,
“…this new agenda aligns with and strengthens our original mission to utilize the power of blockchain technology to deliver financial inclusion across the world,”
Hence, more updates and reforms can be expected to be imposed by Cryptocurrency Exchanges whose trade association bodies have signed the MOU.
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Nivesh from Engineering Background is a full-time Crypto Analyst 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