The G20 summit was held over the weekend in Buenos Aires and the leaders have jointly signed a declaration to enable the development of regulations for digital currencies. This move by the G20 leaders is in accord with the principles of the Financial Action Task Force (FATF).
With the title of the declaration being “Building consensus for fair and sustainable development”, the members of the G20 summit have pledged to commit themselves for the growth of the global economy.
The declaration stated that the digital assets are meant to provide “an open and resilient financial system, grounded in agreed international standards”. In essence, this is very vital if the economy wants to grow and be easily sustained.
The last G20 summit took place in the month of July this year (2018), and in that meeting, the leaders of the summit felt the need to delay their judgment on the anti-money laundering issues in relation to digital currencies until the money laundering Financial Action Task Force standards review have been received.
In the last gathering that occurred on the 30th of November to 1st of December, the summit leaders recognized and laid out the possible ways to develop global growth by giving special recognition to digital assets and how the world is fast becoming a global village.
To achieve all this, the lawmakers have unanimously agreed to create a cryptocurrency regulation which will be compliant with the morals and ethics of the inter-governmental bodies as put in place in the 80s with the aim of promoting the standard of handling cases like terrorist financing, money laundering and many more.
Section 25 of the declaration states the following; “We will step up efforts to ensure that the potential benefits of technology in the financial sector can be realized while risks are mitigated. We will regulate crypto-assets for anti-money laundering and countering the financing of terrorism in line with FATF standards, and we will consider other responses as needed.”
Though, section 25 doesn’t directly address cryptocurrencies, however, section 26 talks about the need to develop a progressive and uniform taxation scheme which will assist in addressing the issues arising from the fast-rising digital global economy.
“We will continue our work for a globally fair, sustainable, and modern international tax system … We will continue to work together to seek a consensus-based solution to address the impacts of the digitalization of the economy on the international tax system.”
The G20 summit leaders have pledged to be on top of the situation and get the public updated in their next Japan summit in 2019.