Blockchain giant invites G20 finance ministers to join group chat: FATF proposal should be carefully considered

In the face of the regulation of VASP mentioned in the draft FATF, V20 organizers felt that they "need to engage in international dialogue to promote cooperation between government and industry and to respond in a coordinated manner to the updated standards proposed by FATF". The G20 summit will be held in Osaka, Japan on June 28 and 29. At the same time and place, there is a "V20 summit"; moreover, the V20 summit is also related to the recently rumored FATF (Financial Action Task Force on money laundering).

Original title: "A number of exchanges will hold peripheral meetings at the G20 to speak publicly on the FATF proposal" by PANews Niuniu Editor: Tong

Original title: "A number of exchanges will publicly call out the FATF proposal at a peripheral meeting of the G20"Author: PANews Niu NiuDiting: Tong

Among the members of the companies or organizations who are sure to attend the meeting announced on the V20 website, they include not only representatives of the blockchain industry, including fiery Coin Group, Bitfinex, Kraken and Crypto.com, but also traditional financial institutions such as Deloitte. According to Finacial News, senior executives of the main cryptocurrency exchanges, Circle, Coinbase and bitFlyer, also confirmed their participation.

In addition, the V20 summit was attended by "members of Parliament from the Japanese Financial Agency, Taiwan, Japan and Australia, regional economic advisers from the French Embassy in Japan, and the British Secretariat." V20 organizers also extended invitations to G20 finance ministers and central bank governors, but there have been no confirmed reports of the meeting.

Dialogue Supervision of Virtual Monetary Service institutions

What is going on at the V20 summit? It started five years ago.

At the G20 leaders' Summit in Brisbane, Australia, in November 2014, the Australian Digital Business Association (Australian Digital Commerce Association,ADCA) organized the Global Digital currency Dialogue. A year later, ADCA signed a memorandum of understanding with the British Digital Business Association (UK Digital Commerce Association), Singapore's Association of Cryptocrats and startups (Association of Cryptocurrency Enterprises and Startups,ACCESS), and the Digital Chamber of Commerce (Washington DC based Chamber of Digital Commerce) in Washington, D.C., to form the Global Block chain Forum (Global Blockchain Forum,GBF).

The V20 Virtual Asset Service provider Summit (V20 Virtual Asset Service Providers Summit) was initiated by the forum's participating founders and many participating countries. V20 organizers want to consult with governments to enhance the reputation and sustainability of digital currencies, with the aim of uniting members of the industry so that (VASP), a virtual asset service provider, can discuss how to adopt appropriate regulatory guidelines and technical solutions, rather than making regulation an obstacle to innovation.

In the last two days of the article, "the toughest regulatory attack in the history of digital money?" Sorry, there may be a misunderstanding: FATF, an international organization dedicated to monitoring global anti-money laundering, issued a draft "public statement-mitigating the risk of virtual assets" in February and will release a final edition on June 21, 2019.

In this statement, FATF recommends that:

  • Countries should pay attention to the possible risks of money laundering and terrorist financing in VASP
  • States should require VASP to be licensed or registered, but no further separate registration of qualified persons is required
  • States should ensure that VASP is adequately regulated or supervised by AML / CFT. For example, VASP acquires and maintains the accurate initiator information required and the beneficiary information required for the transfer of virtual assets in order to provide information when required by the authorities; VASP is required to maintain transaction records and provide data to the relevant authorities as needed; the interim CDD trading limit for the specified VASP is recommended at US $1000 / euro; and so on.
  • In the face of the regulation of VASP referred to in the draft FATF, V20 organizers recognize that they "need to engage in international dialogue to promote cooperation between government and industry (and other such key stakeholders) and to respond in a coordinated manner to the updated standards proposed by FATF".

    So in early June, they decided to invite representatives of leading digital asset exchanges, as well as key industry representatives, to hold a two-day V20 summit at the same time as the G20 leaders' summit. The objective of this activity is to "discuss the development of a unified solution that can be used both for business and for regulators".

    As the V20 organizer wrote on its website: "without the unified support of the virtual asset service provider (VASP), digital exchanges, governments and industry associations, we have no say in negotiations. "

    The goal is to influence the FATF proposal

    What will the V20 summit do? On the website of the V20 Summit, we can see that the V20 proposal includes:

  • Representatives of government agencies, encryption companies and FATF hold round tables at the G20 summit in Osaka
  • Develop industry-specific regulations that reflect the uniqueness of virtual assets to influence FATF proposals
  • Extension of the timetable for the entry into force of the FATF upgrade standard
  • Develop protocols and standards to support the platform to meet FATF's requirements for information collection
  • According to Finacial News, Elaine Sun, the chief compliance officer of Flamin Group, will attend the event as a group representative, Elaine Sun said, "talking directly with FATF to clarify the unique nature of the encryption industry will help build a mutual understanding of regulatory risks and find industry-wide solutions to manage such risks. "

    In addition, Teana Baker-Taylor, executive director of Global Digital Finance, an industry member body dedicated to developing standards of conduct for the encryption industry, said, "depending on the situation, the content of the FATF draft (on the 21st) may not change much, so this [V20 summit] is really an opportunity for the industry to brainstorm and maintain a consistent caliber around an issue. "

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