Key Issues

Critical Consulatation Points

About the G20 Financial Stability Board (FSB)

The Financial Stability Board (FSB) is an international body that monitors and makes recommendations about the global financial system. It was established after the G20 London summit in April 2009 as a successor to the Financial Stability Forum (FSF). The Board includes all G20 major economies, FSF members, and the European Commission. Hosted and funded by the Bank for International Settlements (BIS), the board is based in Basel, Switzerland, and is established as a not-for-profit association under Swiss law.

Crypto Issues:

The FSB has Recommended to the G20 that a Global Harmonized Framework for Crypto assets be established to reduce further regulatory arbitrage and prevent a “patch-work” of cross-border policy.

The FSB Has Suggested 9 Crypto Asset Recommendations:

Defined regulatory powers and tools (both at national and international levels);
Comprehensive and proportionate regulation, supervisions and oversight powers;
National and international-level cooperation;
A Governance framework and related disclosure requirements;
Risk management framework;
Data management framework and related reporting requirements;
Comprehensive, clear and transparent” disclosure requirements
Regulatory monitoring of interconnectivity and independence within crypto-asset ecosystem as well as between such ecosystem and wider financial system;
Comprehensive oversight of “crypto-asset service providers” [VASP’s] that combine multiple functions and activities” (e.g., brokerage, lending, custodian, deposits, market-making, distribution, settlement/clearing and promotion).

About the G20 Financial Action Task Force (FATF):

The Financial Action Task Force (FATF) on Anti-Money Laundering (AML), also known by its French name, Groupe d'action financière (GAFI), is an intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering and to maintain certain interest. In 2001, its mandate was expanded to include terrorism financing (CTF).

The objectives of FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system. FATF is a "policy-making body" that works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas across more than 39 countries and jurisdictional regions. FATF monitors progress in implementing its Recommendations through "peer reviews" ("mutual evaluations") of member countries.

Crypto Issues

Almost three years after the "Travel Rule" [Recommendation 16] guidance was issued by the Financial Action Task Force (FATF), regulators and virtual asset service providers (VASP’s) are continuing to come to terms with the economic and technical challenges of implementing these rules. While VASPs, which include but are not limited to crypto exchanges, wallet services and crypto custodial solutions, are the primary focus of this regulation, mass implementation is expected to continue to impact how all parties interact with crypto.

Industry and FATF are expected to continue dialogue at the V20 on the following matters: