The G20 summit in Riyadh has seen cryptocurrencies once again feature, with member nations urged to implement the Financial Action Task Force (FATF) cryptocurrency regulations adopted in 2019 as well as properly evaluation stablecoins such as Facebook’s Libra token before any launch.
Countries Urged to Adopt FATF Crypto Regulations
Cryptocurrency has been a staple ingredient of G20 meetings for some years now, almost always to do with regulation of them. This is no different this year, with 2019’s FATF crypto regulations, which requires crypto-handling institutions to record recipient and sender names and physical locations among other information, once again referenced:
Building on the 2019 Leaders’ Declaration, we urge countries to implement the recently adopted Financial Action Task Force (FATF) standards on virtual assets and related providers.
Some countries such as Holland have already integrated the new FATF crypto regulations into their practices, but the majority have yet to do so. In fact, crypto companies have been better at adopting the guidelines than some nations – Ripple agreed in June 2019 to put XRP addresses through risk assessment analysis, with Binance announcing that it had partnered with Coinfirm in order to accede to the new demands later that year.
Stablecoins Discussed Again
The G20 also commented on the hot topic of stablecoins, stating that it is critical that regulation should be a priority:
We reiterate our statement in October 2019 regarding the so-called ‘global stablecoins’ and other similar arrangements that such risks need to be evaluated and appropriately addressed before they commence operation, and support the FSB’s efforts to develop regulatory recommendations with respect to these arrangements.
Primary among these is Facebook’s Libra token, the development of which is still ongoing ahead of an intended 2020 launch despite many backers pulling out of the governing Libra Association.
G20 Acknowledge Need to Evolve
On the plus side, the G20 did acknowledge that the money transfer landscape was changing and that traditional financial operations needed to change to keep up:
We recognize the need to enhance global cross-border payment arrangements to facilitate lower-cost and swifter transfers, including for remittances. We ask the FSB, in coordination with the Committee on Payments and Market Infrastructures (CPMI) and other relevant standard-setting bodies and international organizations, to develop a roadmap to enhance global cross-border payment arrangements by October 2020.
It is clear from these comments that the world’s most influential countries are still scared of the impact cryptocurrencies have had on the existing financial system, adding weight to the suggestion by former International Monetary Fund chair Christine Lagarde that cryptocurrency is “shaking the system”.