In an important development, the countries in the G20 group have come out with a resolution wherein they have agreed to support the various regulations set up by the Financial Action Task Force (FATF) including the ones on digital assets. So that you know, FATF is a global body for setting the standards in many critical financial areas and it devises policy framework for curbing ill practices including the money laundering and corruption. What is even more important is the fact that G20 has also agreed to implement the guidelines of FATF regarding the crypto industry and digital assets.
Earlier this month, FATF convened a meeting of member countries to hold discussions regarding various policy frameworks which are in the offing. These frameworks related to a number of financial parameters, including cryptocurrency and digital coin. The agency has asked for suggestions and feedback from the representatives of the participating countries. A total of 300 representatives from various regions around the globe have participated in the discussion, and the process was termed to be very fruitful and productive in its deliberations. The agenda of the discussion related to cryptocurrency and digital assets include how to do accurate mapping of the cryptocurrencies and what safeguards need to be taken in order to keep the fraudsters away from the process.
FATF is working on guidelines related to cryptocurrency and digital assets for a long time now. In April last month, the FATF released a report in which it promised to come up with updated and renewed regulations related to cryptocurrency. It also said that the agency would continue to provide support for the various jurisdictions processes and guide the private and public stakeholders to enhance the safety and security of the crypto assets. The guidelines are going to be very important to restrain the various illegal activities related to crypto assets. The agency has also recognized a huge untapped potential that can be leveraged with the help of technological innovations like blockchain and digital coins. This means FATF is not only concerned with negative aspects of the digital currency but also looking at how to utilize the innovations to bring larger good for the public.
Industry experts and analysts feel that having a consensus in G20 countries regarding the adoption of crypto standards set by FATF is a significant development, especially from the viewpoint of widespread crypto adoption around the globe. Having similar standards for digital coins will help the process to become standardized, thereby reducing the chances of aberration and irregularity. Japan is working very hard to push for standard crypto regulation among G20 countries. The country has already passed a bill related to digital assets having resolutions which have been proposed by FATF. Similarly, South Korea is also leading from the front as the country has vowed to come up with crypto regulation aligned with the measures put out by FATF.