A number of exchanges will openly call the FATF proposal at the G20 opening meeting

The G20 summit of the G20, which everyone is paying attention to, will be held on June 28 and 29, 2019 in Osaka, Japan. At the same time, there is also a “V20 Summit”; and this V20 summit is also related to the recently rumored FATF (Anti-Money Laundering Financial Action Task Force).

Among the members of the company or organization announced by the V20 official website, not only Deloitte, Firecoin Group, Bitfinex, Kraken, Crypto.com, but also traditional financial institutions such as Deloitte. According to Finacial News, senior executives of Circle, Coinbase and bitFlyer, the main cryptocurrency exchanges, also confirmed their participation.

In addition, the V20 summit also included “Japan Financial Affairs Agency, members of Congress in Taiwan, Japan and Australia, regional economic consultants of the French Embassy in Japan, and the UK Secretariat”. The V20 organizers also sent invitations to the G20 finance ministers and central bank governors, but there have been no reports to confirm the participation.

Virtual currency service agency dialogue supervision

What happened to the V20 summit? I have to talk about it five years ago.

At the G20 Leaders Summit in Brisbane, Australia, in November 2014, the Australian Digital Commerce Association (ADCA) hosted the “Global Digital Currency Dialogue”. A year later, ADCA teamed up with the UK Digital Commerce Association, the Association of Cryptocurrency Enterprises and Startups (ACCESS), and the Washington DC based Chamber of Digital (Washington DC based Chamber of Digital). Commerce), signed a memorandum of understanding and established the Global Blockchain Forum (GBF).

The V20 Virtual Asset Service Providers Summit was founded by the founders of this forum and many participating countries. V20 organizers want to negotiate with the government to improve the reputation and sustainability of digital currencies, aiming to unite members of the industry so that Virtual Asset Service Providers (VASPs) can discuss how to adopt appropriate regulatory guidelines and technical solutions rather than Regulation has become an obstacle to innovation.

In the first two days of the article "The most severe regulation in the history of digital currency?" Sorry, there may be misunderstandings, PANews mentioned:

The FATF, an international organization dedicated to the global anti-money laundering initiative, issued a draft of the Public Statement – Mitigating the Risks of Virtual Assets in February 2019, and will be published on June 21, 2019.

In this statement, the FATF recommends that: (1) countries should pay attention to the possible risk of money laundering and terrorist financing in VASP; (2) countries should require VASP to obtain permission or registration, but do not need to be separately registered for permission; (3) States should ensure that VASP is adequately supervised or supervised by AML / CFT, for example, VASP acquires and maintains the required informant information and beneficiary information required for virtual asset transfers" to provide information when needed by the authorities. VASP needs to keep transaction records and provide data to relevant agencies when needed; the VCD's temporary CDD transaction limit is recommended at $1,000/EUR;

In the face of the regulation of VASP mentioned in the FATF draft, V20 organizers recognize that they “need to engage in international dialogue to promote cooperation between government and industry (and other such key stakeholders) and A coordinated response from the updated standards proposed by the FATF."

So, in early June of this year, they decided to invite representatives of leading digital asset exchanges and major industry representatives to hold a two-day V20 summit event during the G20 Leaders Summit. The goal of this activity is to “discuss and develop a unified solution that can be used both for business and for regulatory agencies”.

As the V20 organizers wrote on their official website: "If there is no unified support from virtual asset service providers (VASP), digital exchanges, governments, and industry associations, then we have no say in negotiations."

The goal is to influence the FATF proposal

What should be done at the V20 summit? On the official website of the V20 Summit, we can see that the "V20 proposal" includes:

1. The government agency, the encryption company and the FATF representatives held a round table at the G20 summit in Osaka;

2. Develop a regulation proposed by the industry that reflects the uniqueness of virtual assets to influence the FATF proposal;

3. Extend the timetable for the entry into force of the FATF upgrade standard;

4. Develop protocols and standards to support the platform to meet FATF requirements for information collection.

According to Finacial News, Elaine Sun, the chief compliance officer of the Firecoin Group, will participate in the event as a representative of the group. Elaine Sun said, “A direct dialogue with the FATF to clarify the unique nature of the encryption industry will help establish regulatory risks. Mutual understanding and find industry-wide solutions to manage such risks."

In addition, Teana Baker-Taylor, executive director of Global Digital Finance, an industry member organization that is committed to setting standards for the cryptographic industry, said, “Look at the situation, the content of the FATF draft (on the 21st) may not change much, so this (V20 summit) It's really an opportunity for the industry to brainstorm on a problem and maintain consistency."

Text | Niu Niu Editor | Tong Source | PANews.io