G20 Countries Reaffirm Their Position Regarding Stablecoins and Digital Assets

Following the G20 meetings in Riyadh, Saudi Arabia, this weekend, finance ministers and central bank governors of the participating countries called on countries to implement FATF standards for cryptocurrencies and other digital assets.

G20 Countries Reaffirm Their Position Regarding Stablecoins and Digital Assets

The official announcement, published on February 23, reads:

"We reiterate our statement in October 2019 regarding the so-called ‘global stablecoins’ and other similar arrangements that such risks need to be evaluated and appropriately addressed before they commence operation, and support the FSB’s efforts to develop regulatory recommendations with respect to these arrangements."

Ministers and central bank officials emphasized their commitment to the previous arguments regarding digital assets, while also reaffirming their support for the Financial Action Task Force on Money Laundering (FATF), which sets the standards for AML and CFT.

"We look forward to the report of the Financial Stability Board (FSB) on the regulation of global stablecoins in April 2020 ... IMF report on the macroeconomic consequences of using stablecoins, which also includes issues of currency sovereignty, in July 2020 ... as well as the FATF report addressing the risks associated with AML and CFT in July 2020."

It seems that lawmakers around the world are interested in regulating the crypto industry, which has shown rapid growth over the past decade.

Facebook's announcement of the Libra project has also greatly accelerated the discussion of digital currencies by governments and regulators. However, another strong catalyst for the widespread distribution of cryptocurrencies in the world is likely to be China, which has accelerated the pace of preparations for the introduction of its own digital currency of the central bank.

Another example of the recognition of cryptocurrency risks is the announcement of the Swiss financial market regulator (FINMA) on the implementation of the Financial Services Act (FinSA) and the Financial Institutions Act (FinIA), aimed at solving the problems associated with increased use of cryptocurrencies and money laundering.

Now, regulators and governments quite often turn their attention to the cryptocurrency market, and compliance with AML / KYC / CFT requirements is becoming increasingly relevant for users and the cryptocurrency business. Some companies, including exchanges, already decided to leave the European market due to the introduction of the EU 5AMLD directive.

Featured image credit: Wikipedia