Multilateral Response to Crypto Needed – Say G20 Leaders

Cryptocurrency Worldwide

Cryptos not a threat to global financial stability, but vigilance needed – reads the statement.

Following the June 9 G20 meeting in Fukuoka, Japan, the G20 finance ministers, and central bank governors filed a request with the Financial Stability Board (FSB) – an international body that monitors and makes recommendations about the global financial system – to monitor cryptoassets-associated risks.

“We ask the FSB and standard-setting bodies to monitor risks and consider work on additional multilateral responses as needed,” reads the paper.

The authors of the document do not consider cryptos a threat to the global financial stability – at least not at present – but call for vigilance in the face of risks associated with issues such as money laundering, customer protection and financing of terrorism.

“While crypto assets do not pose a threat to global financial stability at this point, we remain vigilant to risks, including those related to consumer and investor protection, anti-money laundering (AML) and countering the financing of terrorism (CFT),” the authors write.

Except for the risks, the document acknowledges the potential benefits of blockchain for the economy. “Technological innovations, including those underlying crypto-assets, can deliver significant benefits to the financial system and the broader economy,” it reads.

About the author

Maciek Klimowicz

Maciek Klimowicz

A seasoned writer and editor with 10 years of experience in a variety of print and online media. Recognizing the transformative potential of the blockchain technology, Maciek has now put his pen to work to explore the key issues of this fast-evolving sector. Contact him on [email protected].

Leave a Comment

Coinlaw Newsletter

Whether you are a law firm, founder gearing-up for a token offering, or a crypto currency trader, subscribe to the biggest crypto legal newsletter to be informed of the latest developments in each and every jurisdiction