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Crypto Assets Not a Threat to Global Financial Stability: G20 Leaders

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Crypto Assets Not a Threat to Global Financial Stability: G20 Leaders

The recent G20 meeting that was held in Japan has resulted in a communiqué that has been posted on the official website of Japan’s Ministry of Finance on 9 June. The communiqué essentially requests international regulators and the Financial Stability Board (FSB) to keep an eye on risks related to cryptocurrency assets. The request has come from the various finance ministers and governors of central banks from around the world who took part in the G20 meeting.

G20 Leaders Ask FSB to Monitor Risks and Consider Multilateral Responses to Crypto Assets

The leaders who had signed the document maintained that technological innovations, including crypto-assets, could bring about several benefits to the existing financial system and economy. They stated that crypto-assets do not yet pose a threat to global financial stability asserting, however, that the relevant organizations should remain vigilant to risks, especially those involving anti-money laundering (AML), consumer and investor protection, and countering the financing of terrorism (CFT).

The leaders also reaffirmed their commitment to apply FATF Standards, which have been recently amended, to virtual assets and related providers for AML and CFT. They stated that they planned to adopt FATF Interpretive Note and Guidance in its entirety later in June.

The document further stated that ‘FSB’s directory of crypto-asset regulators, and its report on work underway, regulatory approaches and potential gaps relating to crypto-assets’ were welcomed, requesting FSB and other standard-setting bodies to ‘monitor risks and consider work on additional multilateral responses as needed.’

The document also welcomed FSB’s report on decentralized financial technologies and suggestions for financial stability and enhanced regulator-stakeholder dialogues and governance and regulations. The leaders also reaffirmed their efforts to maintain cybersecurity.

Earlier in March this year, it was reported that the Japanese cabinet had approved a new cryptocurrency margin trading law which shall make margin trading on these assets more strict.

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I am a content writer with interests in life sciences and blockchain. I believe that blockchain has the potential to transform every aspect of human endeavor. I love surfing the internet, reading, learning new things, and trying new cuisines.

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