- G20 group to commit to the soon to be released FATF set of standards.
- Exchanges will have to send customer information to other exchanges when transferring funds.
The G20 group of nations’ central bank governor and finance ministers met over the weekend in Fukoka, Japan where they discussed on issued touching on economic growth, financial stability as well as the cryptocurrency space. The financial leaders committed to aligning with the standards for anti-money laundering and counter the funding of terrorism (CFT) soon to be released by the Financial Action Task Force (FATF).
The incoming standards by FATF are expected to introduce tough operating procedures for all cryptocurrency exchanges. The new set of rules are expected to go beyond just know your customers (KYC) policies currently used by most exchanges. Exchanges will have to send customer information to other exchanges when transferring funds just as it done in the traditional banking system.
The group of countries does not see cryptos being a threat to financial stability. On the country, the find the digital assets to have great potential. A communique said:
“Technological innovations, including those underlying crypto-assets, can deliver significant benefits to the financial system and the broader economy. 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 meetup also touched on the issue of cryptocurrency and exchange hacks that lead to the loss of customer funds. They urged the Financial Stability Board (FSB) to monitor the risks and work on the multilateral response as required.
“We also continue to step up efforts to enhance cyber resilience, and welcome progress on the FSB’s initiative to identify effective practices for response to and recovery from cyber incidents.”
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