Stablecoins can pose risks to financial stability and need to be adequately regulated, according to the Group of 20. The G-20’s Financial Stability Board issued a comprehensive stablecoin study on April 14, presenting 10 recommendations to regulate them effectively. The regulators were spurred by the introduction of Facebook’s Libra, which would create an independent stablecoin based on a basket of currencies. Though Libra has since relented on this particular idea, worldwide governments continue to be vigilant over the project. The FSB report notes that existing financial rules generally apply to stablecoins as well, mirroring similar statements from United States regulators. …

India is fostering a digital future via Prime Minister Narendra Modi’s “Digital India” initiative: A national blockchain strategy that includes quantum computing, machine learning and artificial intelligence as digital technologies become the primary platform for economic activity and growth. The IMF and the World Bank have forecasted that India’s GDP will grow at the rate of 7%–8% for the next few years, driving a rapid rise in its hydrocarbon-fueled energy demand tied to growing urbanization, rising incomes and a steadily increasing population. Studies suggest that India’s share of total global primary energy demand is set to roughly double to around …

Facebook’s plans to launch its cryptocurrency Libra this year has more than a few agencies in the European Union and the United States wondering what to do. While government bodies around the world are working to better understand crypto, regulations and laws pertaining to stablecoins aren’t being implemented quickly enough, according to a global finance watchdog. In a letter to finance ministers and central bank governors from the G-20 meeting in Riyadh this week, Financial Stability Board (FSB) Chair Randal Quarles voiced his concerns regarding how quickly digital currencies are affecting the global economy while regulatory action struggles to keep …

Regulators are clamping down on cryptocurrency, and companies around the world are feeling the strain. In late June, one of the most authoritative regulatory organizations worldwide, the Financial Action Task Force (FATF), issued new guidelines on how digital assets should be regulated. While FATF recommendations are not legally binding, the G-20 stated that it uses them to regulate cryptocurrencies for Anti-Money Laundering (AML). For businesses that fail to make the grade, this could mean being shut out of lucrative international markets. No punitive measures have yet been imposed, but companies and crypto exchanges alike are acting fast. What are the …

When we hear about holders of crypto being tracked down by the Internal Revenue Service, or that imprisonment is being considered for anyone using crypto in India, it conjures up a disconcerting image of what regulation might entail. It’s part of crypto’s DNA to be unregulated, some might say. It falls outside the scope of government and should remain so for all the reasons it was created in the first place. But if crypto is the future and there are valid concerns, then surely these should be addressed. If we want crypto to be accepted and become part of our …

The G-20 Summit in Japan brought 20 finance ministers and central bank governors to officially commit to implementing the guidelines of the Financial Action Task Force (FATF). The lack of regulation in the crypto markets can be fertile ground for money laundering, terrorist financing, tax evasion, etc. Therefore, it is not surprising why the FATF guidelines are calling for the end of anonymity in the crypto market. In fact, after the G-20’s determination to comply with the FATF standards, we are soon going to see their implementation around the world, and crypto users will be required to put aside their …

In a world where the global crypto community continues to face a growing number of regulatory hurdles with each passing day, the term “virgin Bitcoin” is starting to become more common among digital currency enthusiasts. However, it is of utmost importance to clarify what this term actually means and the significance it carries. According to Dave Jevans, the CEO of CipherTrace, virgin Bitcoins are essentially BTC tokens that do not have a transaction (TX) record associated with them. As a result of this, coins lack a defined attribution history, making them extremely useful for money launderers as well as other …

“Travel rule” was a term frequently heard at the V-20 Summit, which took place in parallel with the G-20 meeting in Osaka, Japan from June 28 to 29. Regulators and Virtual Asset Service Providers (VASPs) — such as exchanges from different countries — met in Osaka for two days and discussed how to implement the Financial Action Task Force’s (FATF) latest guidance on how to prevent cryptocurrencies being used for money laundering. The travel rule requires VASPs to collect and transfer customer information during transactions. While its objective is to protect consumers, it is controversial from both technological and philosophical …

G20 leaders reaffirmed their previous stance towards cryptocurrencies in a declaration following the G20 Summit in Osaka on June 29 In the declaration, the G20 leaders state that cryptocurrencies do not currently constitute a threat to monetary stability, and that technological innovation can deliver significant benefit to the economy. The participants also welcome the ongoing work on those assets by the Financial Stability Board and other standard setting bodies, and encourages multilateral responses when needed. The authors of the declaration also reaffirm their determination to comply with the updated Financial Action Task Force anti-money laundering and countering terrorism financing standards …

A group of national trade associations representing the local Virtual Asset Service Providers (VASPs) announced their intention to establish an association to provide a global representative for firms in the industry in a press release shared with Cointelegraph on June 29. Per the release, the aforementioned Japanese trade association signed a Memorandum of Understanding (MoU) in Osaka aiming to establish the association. The associations that signed the agreement include the Australian Digital Commerce Association (ADCA), Singapore Cryptocurrency and Blockchain Industry Association, Japan Blockchain Association, Korean Blockchain Association, Hong Kong Blockchain Association, and the Taiwan Parliamentary Coalition for Blockchain & Industry …

Adam Back, who invented the hashcash proof-of-work system and was one of the first people to work on bitcoin (BTC), spoke about the positive uses of blockchain at G20. Cointelegraph Japan reported on Back’s comments at a meeting of finance ministers and central bank governors in Japan on June 8. Sitting next to the governor of the Dutch central bank, Back said he believed blockchain was another move to open networking — and said financial institutions stand to benefit from the technology because it would mean international transfers no longer need to go through intermediary banks with questionable creditworthiness. When …

G20 finance ministers and central bank governors have asked the Financial Stability Board (FSB) and global standard-setting organizations to monitor risks around crypto assets. The request was made in a joint communiqué published on the website of Japan’s Ministry of Finance on June 9, following the G20 meeting held in Fukuoka, Japan. The leaders that cosigned the document state that they urge relevant institutions to give greater consideration to crypto assets and consider appropriate action: “We ask the FSB and standard setting bodies to monitor risks and consider work on additional multilateral responses as needed.” The joint statement also points …