[Osaka, Japan, June 10 2019] As the Financial Action Task Force (FATF) prepares to roll out a new set of rules to increase reporting requirements on cryptocurrency transactions at the G20 Leaders’ Summit this month, a collective of international industry associations have led an initiative to convene Virtual Assets Service Providers (VASPs) for the first-ever V20 Summit, to be held as a concurrent event to the G20 on June 28-29 in Osaka, Japan.
The summit will assemble VASPs, policy makers and crypto-asset industry participants to discuss the implications of the FATF proposed requirements and possible technical solutions to achieve the desired outcomes of the FATF while also protecting and promoting opportunities for business.
In response to the FATF Public Statement in February, a global crypto-asset participant working group brought together by Global Digital Finance (GDF) proposed that application of this requirement could result in potential unintended consequences, including encouraging P2P transfers via non-custodial wallets, which are significantly harder for law enforcement to track or control, ultimately reducing the prevalence of exchanges themselves, which are currently one of the most effective forms of prevention and partnership to law enforcement working in the virtual asset sector.
The V20 Summit will be hosted by the Singapore Cryptocurrency and Blockchain Industry Association (ACCESS), the Australian Digital Commerce Association (ADCA), assisted by the Japanese Virtual Currency Exchange Association (JVCEA), and with the support of the British Blockchain & Frontier Technologies Association (BBFTA) and the Korean Blockchain Association (KBCA), and in cooperation with GDF. Attendees will include G20 delegates, government agencies and policy makers, crypto exchanges and related service providers, notably representatives from the FATF as well as regulatory and regional legislative representatives.
“With the G20 exploring how to maximize opportunities presented by blockchain technologies, and with businesses needing clarity and certainty around global regulatory frameworks, there is a clear need for an international dialogue to drive collaboration between government and industry to deliver a coordinated response to the updated standards proposed by the FATF,” said ADCA President Ronald M. Tucker.
“As an industry, we encourage the responsible adoption of regulation. That said, it is imperative that we unify our voices and engage the authorities in order to find the most appropriate and workable business solutions that meets the requirements of all those involved,” added ACCESS Chairman Anson Zeall.
V20 organizers also recognize the need to create more awareness within the blockchain industry on the impact of the FATF rules on how companies operate.
“GDF fosters global industry-led outreach with policy makers, including FATF, who seek clarity from industry on challenges and proposed solutions. This requires a federation of industry participants including national fintech, crypto and digital asset members organisations collaborating with each other,” said Teana Baker-Taylor, Executive Director of GDF, an industry membership body developing a Code of Conduct which sets out standards and best practices for blockchain and digital asset participants and the companies who work with them.
“We call on all our colleagues in the Virtual Asset community to join this effort. We are committed to cooperating with regulators to come up with the most mutually beneficial solution,” said ADCA’s, Mr Tucker.
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