FATF is expected to release proposals on the 21st of June with the aim of setting new international standards for crypto businesses. Different legislators have supported the summit.
The gathering is expected to bring together national blockchain associations and leading Virtual Asset Service Providers (VASPs) around the world. The standards by FATF for blockchain and cryptocurrency have brought about high expectations among legislators.
Japanese Congressman, Naokazu Takemoto, spoke on long-lasting financial security issues:
“The VASP industry recognizes the importance of clear regulation in preventing financial crime and mitigating corruption,”
The event will run parallel with the G20 Summit on the 28th and 29th of June in Osaka, Japan. Interestingly, the event is hosted in the only country with a legal framework for cryptocurrencies.
Recently, Japan included measures to tighten restrictions on speculative trades and new obligations for exchanges.
Most regulators agree on the need for more regulation, but too much regulation could backfire. According to Roger Wilkins, FTAF ex-president, a general concern is that the new regulations could reduce transactions carried out on the controlled platforms. The new rules may have an inverse effect to what was intended, effectively forcing crypto transactions off the controlled platforms. “The controlled platforms are currently the best avenues we have in gaining visibility over financial crime”, Wilkins added.
Representatives of Blockchain associations from China, South Korea, United Kingdom, Singapore and Australia will also be attending the event to review the new standard. Currently, legislators attests in the necessity for a balance majorly to adapt and take advantage of the upcoming regulations. But, it’s well-known that there’s nothing as flexibility or non-compliance in following FATF recommendations.