Virtual asset service providers (VASPs), which notably includes cryptocurrency exchanges and wallet providers last week witnessed the release of newly proposed guidelines by the Financial Action Task Force (FATF).
As we reported, the proposed rules could have adverse implications on the crypto industry since it requires that crypto platforms globally must share user data for each transaction.
Such a rule would no doubt have an impact on the speed of crypto transactions while at the same time requiring that crypto platforms build a global communication system for sharing the said data.
Even worse is the fact that the FATF would give only one year for its member nations to adopt the proposed regulations.
However, the crypto industry would not merely surrender what is the most substantial value of crypto transactions (near-instant transfers) without an effort.
For this reason, while G20 member nations meet in Osaka Japan, on June 28 and 29 to place a rubber stamp on the stringent rules proposed by the FATF, crypto industry participants will hold a parallel meeting to try to renegotiate the requirements.
There will be a conference on the same days as the G20 member nation meeting with representatives from the FATF, trade associations, crypto exchanges, and government agencies expected in attendance.
The proposal by the newly formed ‘V20 Group’ which comprises of crypto companies is not only to hold a roundtable with the parties mentioned above in attendance. The primary objective would be the release of regulation proposed by the industry to influence the FATF proposal.
Additionally, the group would seek to get an extended deadline for the implementation of the FATF rules while finally developing protocols and standards that would underpin the data collection platform which the regulators proposed.
At the time of writing the V20 Summit had already gathered the support of over 40 crypto platforms, making it a potentially defining meeting for the crypto industry.