For the first time, an international body has created a form of regulation for cryptocurrencies, and it is perhaps little surprise that it is the G20 Nations.
At a just-concluded G20 Summit held in Buenos Aires, Argentina, the body announced as part of its written declaration that they “will regulate crypto-assets for anti-money laundering and countering the financing of terrorism in line with FATF standards and we will consider other responses as needed”.
The development marks the first real decision made on crypto-assets since the G20 Nations started exploring its potential to hurt or disrupt the financial landscape earlier this year.
In an earlier meeting, the group admitted that “crypto assets can deliver some benefits” to the global economy but stopped short of creating a regulatory framework because ‘they do not stand as a risk to global financial stability.’
It seems that the nations have decided to bring the invention under the eye, rather than let it continue to exist in its original uncensored nature.
What Coming Under FATF Standards Mean For Cryptocurrencies
As per data from their official website, The Financial Action Task Force (FATF) is a body established in 1989 with the primary responsibility of setting standards that will make it easy for money laundering, terrorist financing and similar offenses to be combated.
Bringing cryptocurrencies under their jurisdiction will mean that the agency keeps an eye out on the illegal movement of cryptocurrencies. This new oversight will likely reduce the use of crypto for money laundering and other fraudulent activities which the FATF supervises.
For instance, in the past week, the U.S Treasury Department recently haunted down two Bitcoin wallet addresses used to move funds raised through malicious ransomware.
The point of interest now will be how the FATF can effectively monitor crypto-assets which were created to reduce censorship by promoting highly anonymous transactions.
Insight into how this obstacle will be overcome was not stated in the G20 declaration, but it is a big win for cryptocurrencies since they have done as much as attracting international oversight.
For the future, the body said it will come up with a “consensus-based” solution that will bring the digitized economy in harmony with the international tax system. The G20 nations will release an update in this respect come 2019 and a final report in 2020.
Member countries of the G20 nations include the United States, the United Kingdom, the European Union, Argentina, Australia, India, Canada, South Africa, France, China, Germany, Brazil, Indonesia, Italy, Japan, Republic of Korea, Russia, Mexico, Saudi Arabia, and Turkey.