The G20 countries signed a joint declaration in Buenos Aires, Argentina, where the group promised to regulate digital currency and combat its use of money laundering and terrorist financing in line with FATF standards.
The announcement was signed by the group:
“We will organize digital assets to combat money-laundering and counter terrorist financing in line with FATF standards, and we will consider other responses as needed”
FAFT was established by the Organization for Economic Co-operation and Development (OECD) as an organization that develops policies to combat money laundering and terrorist financing. The FATF began discussing ways to introduce binding rules governing digital currency trading worldwide earlier this year. The Organization has also sought to establish the current rules in an attempt to accommodate new market realities.
According to the G-20 Declaration, “other responses” will be provided as needed. Countries will also continue to monitor the global economy, which is rapidly becoming digitized. The group will seek a consensus-based solution to address the effects of digitizing the economy on the international tax system with an update in 2019 and a final report in 2020, the announcement said.
The G20 forum released its first statement last July, seeking to apply anti-money laundering standards to the digital currency sector by October. At that time, it had stated that its member states would continue to monitor the sector, while claiming that the sector posed no financial threat to the global economy.
To instruct the Financial Stability Board (FSB) to regulate digital currencies
The forum was commissioned by the Financial Regulatory Authority (FSA), the Financial Stability Board (FSB), headed by Mark Carney, the Bank of England official who encourages strict surveillance of digital currency markets to set up a framework for monitoring the sector. The regulator has published a set of benchmarks that it may use to monitor and achieve markets. The FSB framework was developed in partnership with the Payments and Market Infrastructure Committee. Within the framework of the Council:
“The objective of the framework is to identify any financial stability concerns. To this end, it includes measures that identify risks that are likely to highlight the risks associated with digital currencies, using data from public sources when available “