We acknowledge that technological innovation, including that underlying crypto-assets, has the potential to improve the efficiency and inclusiveness of the financial system and the economy more broadly. Cryptoassets 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. At some point they could have financial stability implications. We commit to implement the FATF standards as they apply to crypto-assets, look forward to the FATF review of those standards, and call on the FATF to advance global implementation. We call on international standard-setting bodies (SSBs) to continue their monitoring of crypto-assets and their risks, according to their mandates, and assess multilateral responses as needed.
Communiqué, Finance Ministers & Central Bank Governors, G20 Argentina
This week, members of the Group of Twenty (G20) met in Argentina to discuss global financial and economic issues including cryptocurrency. The G20, which was formed in 1999, is made up of 19 countries (Argentina, Australia, Brazil, Canada, China, Germany, France, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom and the United States) and the European Union.
As you can see in the official Summit Communiqué, discussion around crypto acknowledged both positive and negative impacts of virtual currencies ranging from improved efficiency to use in money laundering. Not surprisingly, they called for further review and monitoring of the impact of cryptocurrencies on financial markets, and application of Financial Action Task Force (FATF) standards. The Financial Stability Board (FSB) was asked to consult with other relevant agencies and report on cryptocurrency regulation by July 2018.
This is not quite as interesting as we hoped it would be when we made our announcement of an announcement the other day . . . We’ll keep an eye out and provide updates on further developments resulting from the G20 Summmit if they become available.