G20 summit to focus on global crypto framework
The upcoming G20 summits are expected to focus on crypto regulation. This is due to money laundering and terrorist financing with cryptocurrency.
The last G20 summit under Indonesia’s presidency will take place on 15 November. Later, India will take over the presidency of the future G20 summits for one year from December 2022.
Ahead of the G20 summit, India’s finance minister, Nirmala Sitharaman, has shared her thoughts on crypto regulation. Last Tuesday, while addressing the Indian Council for Research on International Economic Relations (ICRIER), she quoted that:
We have not come out with any plan to regulate digital values. The agenda for regulation of cryptocurrency will be brought in the G20 meeting.
Nirmala Sitharaman
Illegal activities funded by cryptocurrency.
Svetlana Martynova, a senior official at the United Nations, believes that the prevalence of crypto-financing of terrorist activities may have increased fourfold in recent years. She estimates that 20% of terrorist attacks have been crypto-financed.
Additionally, according to a Chainalysis report, illegal entities received nearly $10 billion this year. While in 2021 it was a record high, with illegal entities receiving more than $15 billion.
India to prioritize crypto regulation at G20 summit.
You don’t know where the path will lead you. Is it drug financing? Is it terrorist financing or is it just gambling? So that regulation cannot be successful if a country does that. We haven’t come up with any plans yet. So we need to have all the members of the G20 on board to see how it can best be done.
Nirmala Sitharaman
India has maintained a strict stance against cryptocurrencies. Therefore, it is most likely that those who are hosting will bring up the discussion of crypto regulation at the summit. Earlier, India’s Home Minister Amit Shah stated that crypto is responsible for the increase in drug trafficking in India.
FATF takes responsibility for crypto regulation.
The Financial Action Task Force (FATF) is ready to strengthen the fight against money laundering and terrorist financing. They are preparing to conduct annual checks to ensure countries are enforcing anti-money laundering and anti-terrorist financing rules on crypto providers operating in their jurisdictions, two sources with knowledge of the matter told Al Jazeera.
Countries that do not follow AML (anti-money laundering) guidelines may be added to the “grey list”. Syria, Uganda and Barbados are part of the list. FATF is increasing its monitoring of the countries on the gray list.
Furthermore, the FATF adds the countries that continue to be non-cooperative in dealing with AML to the blacklist. Iran is part of the blacklist. They are subject to financial sanctions and other financial restrictions by the FATF.
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