GLOBAL GOVERNMENTS vs CRYPTO REGULATION

[KYCbench]

 

Its not a secret for anyone that governments and other influential organizations seek to take control of the cryptocurrency industry and impose their game rules, by analogy with traditional finance. In the new technologies that have opened up completely new opportunities for many people, states see a direct threat to the current system that allows a handful of wealthy individuals to maintain economic segregation in their society.

It can be stated that ten years after the appearance of Bitcoin and other cryptocurrencies, the government’s unified viewpoint has not yet been worked out. These attempts, however, they do not leave.

Federal Reserve Bank of New York held a meeting with the participation of 24 financial bodies and 11 major international organizations, including the International Monetary Fund (IMF) and the World Bank at the beginning of May. The event was held as part of the plenary session of the Financial Stability Board (FSB), and among other things it discussed “vulnerabilities in the global financial system”, as well as international standards for the regulation of cryptocurrencies as part of a set of protective measures.

As the Council stated, its work with crypto assets focuses on two areas: monitoring the effects of their use on financial stability and creating a list of regulators. The organization also announced its intention to publish updated information on the work of regulatory standards development bodies and present it at a meeting of finance ministers and central bank governors of the G20 countries, which will be held June 28-29 in Osaka.

The importance of consistently introducing international standards was also highlighted by Choi Jon-ku, Chairman of the South Korean Financial Market Regulatory Commission (FSC), who was present at the meeting. In his opinion, each country needs to apply regulations in accordance with international standards prepared by the Financial Action Task Force on Money Laundering (FATF). Such an approach, the head of FSC said, will help negate inconsistencies in the laws of individual countries.

The key message of the FATF recommendations is to propose that “virtual asset providers”, which include cryptocurrency exchanges, wallets and other infrastructure platforms, “collect and store necessary and accurate information about the senders and recipients of crypto assets”. According to the organization, the authorities should be able to obtain this data at any time.

To understand the emerging picture, it is also necessary to remember that the recommendations of the FSB apply to the countries that are part of the organization. To date, this list includes Australia, Argentina, Brazil, Canada, China, France, Germany, Hong Kong, India, Indonesia, Italy, Japan, South Korea, Mexico, the Netherlands, Russia, Singapore, Spain, Switzerland, Turkey, UK and the United States, that is, almost all the largest jurisdictions in the world. In addition, the FSB includes the IMF, the World Bank, the Bank for International Settlements (BIS), the European Central Bank, the European Commission and a number of other organizations.

In addition, in April, the FSB submitted a report that listed the agencies responsible for regulating cryptocurrency in the G20 countries, which includes most of the countries listed above.

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