Judging by recent reports, G20 countries are about to regulate cryptocurrencies. They have signed a joint declaration in Buenos Aires which promises to regulate cryptocurrencies and combat its use for money laundering and financing terrorism. They will follow the standards of FATF (Financial Action Task Force).
“We 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,” reads the declaration.
G20 focus on crypto
According to the G20 declaration, the countries would also continue to monitor the global economy, which is rapidly digitalizing, adding that it “would seek a consensus-based solution to address the impacts of the digitization of the economy on the international tax system with an update in 2019 and a final report in 2020.”
The forum had commissioned its regulator. The Financial Stability Board (FSB), headed by Mark Carney, Governor of the Bank of England, who is a fan of strict monitoring of the crypto markets to develop a framework for monitoring the crypto sector.
“The objective of the framework is to identify any emerging financial stability concerns in a timely manner. To this end, it includes risk metrics that are most likely to highlight suck risks, using data from public sources where available,” the FSB framework reads.
Regulate crypto just like they regulate banks?
However, This agreement comes as no surprise as the G20 had already announced the news earlier this year. Crypto enthusiasts were familiar with their willingness to regulate crypto-based assets by the end of this year. It is weird to see nations this big to brag about strictly regulating cryptocurrencies. Wouldn’t it be better to regulate banks and their fiat-based assets thoroughly first? Moreover, only then move on to regulating crypto? They are so concerned about money laundering or terrorism in crypto. Could it be that they don’t see further than their nose? Alternatively, if they are going to regulate crypto just like they are monitoring their banks, then there is no need for a regulation which doesn’t work. The incident with Danske Bank when billions of dollars were laundered through the bank still is believed to be one of the biggest in the world. The Danske scandal involved 32 currencies, companies from Cyprus, the British Virgin Islands and Seychelles. Customers of the Estonian branch have been traced to Russia, Azerbaijan, and Ukraine.
One scheme run through the branch reportedly involved Azerbaijan’s ruling elite, and a $2.9bn (£2.2bn) fund used to pay European politicians and lobbyists. Now tell me again – what were they going to regulate?
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