The Prime Minister of India Narendra Modi has entered into a crypto assets discussion which was carried out at the fourteenth meeting of the G20 called “The 2019 G20 Osaka summit.” This G20 summit was held on June 28-29 in Osaka, Japan.
Narendra Modi from India and other world leaders from other 18 countries and the Europian Union (EU) were present in this G20 summit. Argentina, Australia, Brazil, Canada, China, France, Germany, Indonesia, Italy, Japan, Mexico, Republic of Korea, Republic of South Africa, Russia, Saudi Arabia, Turkey, United Kingdom, United States of America are the 18 countries. All the world leaders announced their applying commitment of crypto standards. An inter-governmental body called the Financial Action Task Force (FATF) set up the crypto standards. Nirmala Sitharaman is a new Indian Finance Minister who also entered in this G20 summit along with other finance ministers for this applying commitment.
Nischal Shetty is the Chief Executive Officer (CEO) of a crypto exchange called WazirX who said, “Implementing the FATF standards would mean that crypto gets a legal status in India. The biggest advantage is to the end customers as the crypto industry can once again offer banking services to the fiat on ramps.”
Suresh Prabhu is an Indian Sherp. Various discussions of the Modi participation were detailed by the Indian Sherpa Suresh Prabhu. A G20 leaders discussion related to crypto-assets standards implementation according to Suresh Prabhu is, “In economy, finance will be an important issue. Therefore issues related to global finance … whether it is related to technological innovation which can deliver benefits in financial markets or whether it is related to the commitment in applying recently amended FATF [Financial Action Task Force] standards for virtual assets, all these issues were also discussed.”
The G20 leaders conclusion related to this crypto standards implementation is, “We, the leaders of the G20, met in Osaka, Japan on 28-29 June 2019 to make united efforts to address major global economic challenges … We reaffirm our commitment to applying the recently amended FATF standards to virtual assets and related providers for anti-money laundering and countering the financing of terrorism.”
The inter-governmental body called the Financial Action Task Force (FATF) was established in the year 1989. It is located in Paris, France. Combating money laundering and terrorism financing is a purpose of FATF. Marshall Billingslea is the President of FATF, according to Financial Action Task Force on Money Laundering.
Concerns related to the technical challenges while complying with the requirements of FATF were raised by multiple industry participants. Virtual asset service providers (VASPs) will have to verify the identities of customers. The customers identities won’t only have to be verified, but the recipients of the customers will also have to be identified. This information will also have to be transferred. All these required by FATF guidelines. More than 1,000 USD/EUR threshold related transactions will be implemented with this new aproach.
Wazirx CEO Nischal Shetty said, “You cannot expect an exchange in one country to adopt FATF standards while exchanges in other countries don’t, that just won’t work.” For instance, if an exchange of one country has already implemented FATF, but an exchange of another country hasn’t implemented FATF, therefore, a transaction between these two countries will be difficult to perform.
An agreement called the Memorandum of Understanding (MOU) was signed up by multiple crypto associations. Setting up an association with the aim of helping in the establishment of a way is a purpose of the agreement. The way through which connections with government agencies and FATF are possible, Bitcoin.com reported.
FATF standards implementation is believed to remove the banning of cryptocurrency-related every uncertainty and fear which an Indian crypto assets community faces often. India is likely to follow the decision which is taken by the majority of the G20 nations. Bringing the full transparency into crypto transactions is possible through the FATF standards.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]