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G20 Requests That FATF Clarify AML Standards for Cryptocurrencies

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The G20, an international forum that consists of 19 countries and the European Union, has submitted a new report that has asked for an Anti-Money Laundering (AML) standard for cryptocurrencies from the Financial Action Task Force (FATF) by October 2018.

The report talked about recent technological benefits on individuals and businesses alike. Since financial topics are incomplete without the discussion of cryptocurrencies, the G20 stated that it believes that this ‘technological innovation’ is indeed beneficial for the economy and financial systems.

Crypto-assets do, however, raise issues with respect to consumer and investor protection, market integrity, tax evasion, money laundering and terrorist financing. Crypto-assets lack the key attributes of sovereign currencies. While crypto-assets do not at this point pose a global financial stability risk, we remain vigilant.

The G20 further wrote that it looks forward to the works presented by the Financial Stability Board (FSB) and Standard Setting Bodies (SSBs) on the risks posted by crypto-assets.

“We reiterate our March commitments related to the implementation of the FATF standards and we ask the FATF to clarify in October 2018 how its standards apply to crypto-assets,” the document stated.

This report follows the meeting held by G20 in Argentina in March 2018, in which the countries decided that a proposal regarding the regulation of cryptocurrencies should be submitted by July.

Meanwhile, India, who is a part of the G20, appears to be tightening its restrictions on cryptocurrencies. Yesterday, the Reserve Bank of India (RBI) requested the Supreme Court to regulate Bitcoin and other cryptocurrencies. Shyam Divan, senior advocate of RBI, said that these currencies will lead to “illegal transactions”.

In April 2018, RBI closed all of its services for cryptocurrencies – any individual or business related to this new technology will not be entertained by the bank. Instead, the central bank stated that it would focus on creating its own cryptocurrency in the future.

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