VIRTUAL ASSET INDUSTRY ANSWERS G20 CALL TO OFFER SOLUTIONS TO REGULATORY AND COMPLIANCE ISSUES
International Digital Exchange Association (IDAXA) calls on industry to unite
[Nusa Dua, Bali, Indonesia, November 16 2022] In response to a series of unfortunate events rocking the crypto world, a number of Virtual Asset Services Providers (VASPs) have announced specific industry proposals addressed to global regulators, aiming to expand cooperation and enhance dialogue between both sides, while enabling improvements to the existing regulatory mechanisms and compliance infrastructure.
Mr. Kumar acknowledged the importance of industry cooperation in addressing financial crimes.
- The creation of a mechanism to allow VASPs to discover one another, so as to better manage counterparty risk and enhance compliance requirements
- Harmonizing thresholds for reporting transfers across jurisdictions
- FATF collaboration with the Global Privacy Assembly to enhance understanding on Data Privacy
- For FSB to consider specialized regulation for the industry’s unique activities
- A shift to a principles-based risk management approach
- The creation of a working group between Privacy regulators, FATF and the International Organization of Security Commissions (IOSCO)
This call to action for more interagency and international dialogue echoes paragraph 50 of the G20 Bali Leaders’ Declaration which recognized “the need for the international community to step up its efforts to effectively combat money laundering, terrorism financing and proliferation financing”.
The G20 Leaders further stated “we welcome the initiative by the FATF to promote implementation of international standards on virtual assets. […] We encourage all G20 members to strengthen collaboration to adopt and effectively implement the FATF standards”.
“We are extremely pleased by the commitment shown by both Industry and Regulators to the V20 Summit process. We were pleased to see that close to 60 individual regulators, representing 27 regulatory bodies across 18 countries, also joined us virtually to listen to the V20 proposals. IDAXA is calling on the broader Virtual Assets Service Providers industry to join the effort to ensure continued consumer trust in our institutions.”, said Anson Zeall, co-founder of IDAXA, the convenor of the V20.
The V20 Summit is an annual event aligned with the G20 Leaders’ Summit and will reconvene in India in 2023 as Indonesia turns over the G20 presidency.