Financial Stability Board (FSB) and Global standard-setting organisations are asked to monitor the risks surrounding crypto assets by G20 finance ministers and central bank governors. The request was published on June 9th on the website of Japan’s Ministry of Finance made in a joint communique after the G20 meeting in Fukuoka, Japan.
The document was consigned by the leaders stating that they urge relevant institutions to look into the crypto assets and consider an appropriate action.
“We ask the FSB and standard-setting bodies to monitor risks and consider work on additional multilateral responses as needed.”
The statement also indicates that technological innovations, along with those surrounding crypto-assets can prove to be of notable benefits for financial system and broader economy. The same sentence was also published in the document released after the G20 summit held in July 2018 in Buenos Aires.
The authors of the paper raised their concerns surrounding the technology after showing such optimism saying: “While crypto assets do not pose a threat to global financial stability at this point, we remain vigilant to risks, including those related to consumer and investor protection, anti-money laundering (AML) and countering the financing of terrorism (CFT).”
The latest statement marks that the parties involved look forward to the adoption of Financial Action Task Force’s (FATF) Interpretive Note and guidance on crypto assets “at its [FATF’s] plenary later this month.” The leaders also say that they stand on their commitment to apply the recently amended FATF standards for crypto.
The document also expresses that central bank governors and finance ministers welcome work pertaining to crypto carried out by the International Organisation of Security Commissions and FSB which are renowned international regulatory bodies.
One of the blockchain analysis firms, Chainanalysis which is directly engaged with global regulators says that it would be unforeseen if the parties buy into something new in the course of G20 summit in 2019.
Japnese media in April 2019 reported that the leaders were expected to establish new AML regulations during the meeting in Fukuoka.