G20 pulls back from calls to regulate crypto-markets: „consensus was reached on the need to continue monitoring and discussing the issue”

The final communiqué of the First G20 Meeting of Finance Ministers and Central Bank Governors reflected global economic leaders’ commitment to “strengthen the contribution of trade to our economies.”

The issue of crypto-assets was raised during the meeting, and that two positions stood out: one in favour of regulation and work on cybersecurity, and the other suggesting that given that there exist these calls for regulation and greater cybersecurity, the international payment system must be improved. Consensus was reached on the need to continue monitoring and discussing the issue.

In recognition of the challenges posed by cryptocurrencies, the ministers agreed to “implement the Financial Action Task Force (FATF) standards as they apply to crypto assets,” stating that they „look forward to the FATF review of those standards,” and calling on the FATF to push forward with their global implementation.

„We acknowledge that technological innovation, including that underlying crypto-assets, has the potential to improve the efficiency and inclusiveness of the financial system and the economy more broadly. Cryptoassets do, however, raise issues with respect to consumer and investor protection, market integrity, tax evasion, money laundering and terrorist financing. Crypto-assets lack the key attributes of sovereign currencies. At some point they could have financial stability implications. We commit to implement the FATF standards as they apply to crypto-assets, look forward to the FATF review of those standards, and call on the FATF to advance global implementation. We call on international standard-setting bodies (SSBs) to continue their monitoring of crypto-assets and their risks, according to their mandates, and assess multilateral responses as needed.”

See the full document: The final communiqué of the First G20 Meeting of Finance Ministers and Central Bank Governors