Regarding the opportunities and responsibilities of the G20 member states of digital assets

The Observer Research Foundation (ORF), an independent think tank, stated in a recent article that G20 countries have both “opportunities” and responsibilities in coordinating policies related to Crypto and non-public investment . It is conducive to the establishment of a “sustainable, balanced and inclusive global economic architecture.”

The report puts forward some key observations, but first, let’s review the discussion of asset classes at the 2018 G20 Summit.

G20 member states signed a joint statement in Buenos Aires, stating, “We will regulate anti-money laundering Crypto in accordance with FATF standards, combat terrorist financing, and consider other countermeasures as needed.”

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Having said that, the Financial Action Task Force (FATF) recently issued revised digital asset guidelines. The FATF clearly stated that “National authorities should conduct a coordinated risk assessment of virtual asset activities, products and services .”

In addition, it also commented on assessing the risks associated with virtual asset service providers (VASP) and recommended that countries provide licenses or register for VASP.

Let us focus on the adoption of Crypto by the G20 countries. It is worth noting that the Governor of the Saudi Arabian Central Bank (SAMA) recently said that the Crypto sector is too close to criminals. Fahad Al Mubarak, a management member, claimed that crypto such as BTC cannot destroy the banking system.

Hussain Abdulla, co-CEO of QInvest, an investment bank in Qatar, claimed that Crypto “has not yet complied with Sharia law and needs more understanding.”

At the same time, China has explicitly banned Bitcoin and other Crypto activities, but it continues to maintain innovation in CBDC. FATF’s guidance believes that CBDC is not a virtual asset, and FATF standards will apply to CBDC similar to any other form of legal tender.

However, the International Monetary Fund pointed out in its recent stability report that global policymakers should prioritize the G20 cross-border payment strategy to make “cross-border payments faster, cheaper, more transparent and more inclusive. ”

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It is worth noting that the Bank for International Settlements Innovation Center took the lead in establishing a bridge between multiple central bank digital currencies (CBDC), which is an ecosystem of wholesale central bank digital currencies (CBDC) . Their launch is a multi-currency cross-border payment system supported by blockchain technology.

At the same time, ORFO’s report also pointed out that “Crypto is particularly popular in emerging markets and developing economies, including G20 economies such as Turkey, Brazil, Argentina, and Indonesia.”

At the same time, the adoption rate of Crypto is soaring globally, and G20 countries have formulated corresponding regulatory frameworks . For example, India may enact laws for its 2 million Crypto users as early as February 2022.

At the same time, South Korea is also optimizing its existing policies, introducing taxes and licenses for Crypto.

Although the G20 member states act frequently, in the context of the Internet economy, the Independent Think Tank Observer Research Foundation (ORF) pointed out that “the G20 group should fully grasp the supervision of Crypto, and advise member states on the nature of the technology and the best practices of supervision. National regulatory agencies provide guidance.”

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