According to a report from bitcoin.com, the G20 countries are now preparing on establishing crypto policies at the upcoming G20 summit held on June 28 and 29 in Osaka Japan. According to Wikipedia, G20 is an international forum for the governments and is attended by central bank governors from the world’s highly developed economies consisting of Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, South Korea, South Africa, Russia, Saudi Arabia, Turkey, the U.K., the U.S., and the European Union.
Several standards-setting regulatory bodies have committed their resources to help the G20 countries in setting crypto policies, the committee members have signed a joint declaration that would put regulations on crypto assets for Anti Money Laundering and countering the use of cryptocurrencies for the financing of terrorism. According to Japanese media, the countries that are meeting in the G20 summit are expected to accept new crypto-related regulations.
The Financial Action Task Force (FATF), an inter-governmental body which was founded in 1989 on the initiative of the G7 to develop policies for countering money laundering, also has reaffirmed support from G20. The committee has asked about clarification on the approach that FATF would use to apply its standard to virtual asset activities.
FATF responded to it, “Jurisdictions should apply a risk-based approach to virtual assets. At a minimum, virtual asset service providers should be required to be licenced or registered in the jurisdiction where they are created, or … where they have their place of business.”
A report outlining the list of crypto regulators in every member country has also been submitted to G20 by the Financial Stability Board. The Financial Stability Board monitors and also makes recommendations about the global financial system. Along with this, The International Organization of Securities Commissions, an association of organizations that regulates future markets and also sets standards globally for securities and market regulations, has developed a support framework for identification of risks associated with the trading of crypto assets.
In South America, on the issue of Anti-Money Laundering and combating money laundering, the Central Bank of Brazil said: “Our current mandate allows us to assess financial institutions’ exposure to those assets and supervise their operations. Moreover, BCB has the mandate to regulate what type of operations involving crypto-assets, if any, financial institutions can perform.”
Currently, different countries are using different approaches regarding the regulation of cryptocurrencies.
The Saudi Arabian Monetary Authority (SAMA) along with the Capital Market Authority “are planning to conduct a study that aims to conduct assessments of the feasibility to introduce crypto-assets and ICOs in Saudi Arabia.” The Board also clarified: “Currently, there is no regulation directly targeting crypto-assets in Saudi Arabia. However, SAMA’s current mandate allows it to assess financial institutions’ exposure to those assets and supervise their operations.”