G20 Countries To Regulate Cryptocurrencies For Anti-Money Laundering

News, Regulation | December 3, 2018 br>

The G20 countries have agreed to work on international effort to regulate cryptocurrencies in line with Financial Action Task Force (FATF) standards.

During the second session of the G20 summit held in Buenos Aires, Argentina, a joint declaration was officially signed by all G20 nations, acknowledging that “necessary reform” is required to maximize the benefits of digitalization and emerging technologies for innovative growth and productivity.

“We will continue to monitor and, if necessary, tackle emerging risks and vulnerabilities in the financial system; and, through continued regulatory and supervisory cooperation, address fragmentation,” the document said. “We look forward to continued progress on achieving resilient non-bank financial intermediation. We will step up efforts to ensure that the potential benefits of technology in the financial sector can be realized while risks are mitigated. 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.”

The member states will also continue to work together to seek a consensus based solution to address the impacts of the digitalization of the economy on the international tax system with an update in 2019 and a final report by 2020.

“We will continue our work for a globally fair, sustainable, and modern international tax system based, in particular on tax treaties and transfer pricing rules, and welcome international cooperation to advance pro-growth tax policies,” the document said.

Japanese news agency Jiji reported that while the UK and the European Union (EU) are considering digital taxation, China and the United States are cautious about developing an international taxation system for cryptocurrencies.

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