Global legislators have voiced their support for a forthcoming summit in Osaka, Japan, which will be devoted to virtual asset service providers’ (VASPs) response to a new set of recommendations set forward by the Financial Action Task Force (FATF).
According to the report, the V20 summit will take place alongside the G20 Leaders Summit in Osaka on June 28 and 29, and will convene G20 representatives, national blockchain associations, VASPs and legislators from numerous jurisdictions.
Those in attendance will use the summit to explore the evolution of possible technical solutions and prospective impact of the FATF’s forthcoming proposal on how participant nations should exercise oversight for the digital assets sector.
As previously reported, the FATF is an intergovernmental organization established on the initiative of the G7 to promote the implementation of legal, regulatory and operational measures to fight money laundering.
The organization has developed a series of recommendations recognized as the international standard for combating money laundering and the financing of illicit activities, which — while not legally binding — are in use by around 200 countries globally.
Responses to the forthcoming proposed standards have been divided. The report cites a statement from ex-FATF President, Roger Wilkins AO and former secretary Australian Department of the Attorney General, who has recognized that:
“What we are hearing from industry is that the new rules may have the opposite effect to which they were intended, effectively forcing crypto transactions off the controlled platforms, which are currently one of the best avenues we have in gaining visibility over financial crime.”
The V20’s host nation, Japan, is notable for having recognized the crypto industry’s move to self-regulate.
Japanese politician Naokazu Takemoto expressed his view that VASPs recognize “the importance of clear regulation in preventing financial crime,” adding that he welcomes the opportunity for the country to share its experience with the international community.