Alongside the G20 Summit in Osaka, Japan, there’s a V20 Summit held especially among VASPs (Virtual Asset Service Providers). The meeting was closed on Saturday discussing the policies announced by FATF in the past week.
The V20 Summit Ends With Positive Talks Among Crypto Service Providers. Hopes To Form A Self Regulatory Body
FATF (Financial Action Task Force) is an inter-governmental body that sets global standards to combat anti-money laundering and terrorist financing as well as other threats to the integrity of the international finance system. Last year, it announced that its international standards for illicit finance regulations would now apply to virtual assets with more precise instructions coming in 2019.
With FATF being the relevant authority for seeking advice in policy framing, many nations have heard the suggestions from FATF and made their opinion.
Though the proposed regulations put up by FATF aren’t mandatory, every nation of the community would eventually follow it. As the seclusion from it may lead that nation to fall apart from big nations interests later.
Financial Action Task Force (FATF) put forward proposed standards that would require virtual asset providers, including cryptocurrency exchanges, to not only verify their customers’ identities but also the recipients of their customers’ transfers. FATF has sought industry feedback on these standards, due to take effect during the G20 Summit in Osaka in June this year.
This rule of maintaining the data for sender and receiver is seen ineffective by the member nations. As such data collection would be impossible and shall lead to other unwanted consequences which are against the proposed FATF rules. The V20 delegates have raised concerns of “What if users move funds from exchange to cold wallets and then send it others“. Collection and storing data of such cold wallets would be highly impossible. Furthermore, they’ve proposed forming a Self Regulatory Organization (SRO) to regulate and monitor the crypto related activities.