G-20 member countries are looking at an October deadline for reviewing a global anti-money laundering standard on cryptocurrency, industry website Coindesk has reported, citing an official statement, issued after the 21-22 July meeting of the group’s finance ministers and central bankers in Buenos Aires.
Cryptocurrencies and their underlying technology were among the points addressed in the document. According to the communique, acknowledged that technical innovations, including distributed ledger technology “can deliver significant benefits to the financial system and the broader economy”. However, it added that cryptocurrencies “raise issues with respect to consumer and investor protection, market integrity, tax evasion, money laundering and terrorist financing”. While noting that digital currencies “do not pose a global financial stability risk”, the group said that it remained vigilant.
The communique echoes tone set after the G-20 March meeting, when the group called on the Financial Action Task Force (FATF) to review its existing standards and to clarify how these standard could be applied to cryptocurrencies, setting a July deadline for proposals. The latest statement indicates that the deadline has now been pushed back to October.
“We reiterate our March commitments related to the implementation of the FATF standards and we ask the FATF to clarify in October 2018 how its standards apply to crypto-assets,” the group said.
The Financial Stability Board, a body focused on analysing and making recommendations to the G-20 on global financial systems, last Monday proposed a framework for monitoring digital currencies, based on several key metrics, including price volatility the size and growth of initial coin offerings (ICOs) crypto's wider use in payments and institutional exposure, as well as the sector’s volatility compared to gold, currencies and equities. As Coindesk reported at the time, the FSB believes that monitoring these metrics “should help to identify and mitigate risks to consumer and investor protection, market integrity, and potentially to financial stability".