With the G20 on its doorstep, another summit has taken place in Japan: the V20. During this summit, a number of large companies from the cryptocurrency sector and legislators came together to discuss the future of the crypto industry. The result is the creation of an organization that should represent the entire sector on issues such as the new Financial Action Task Force (FATF) guidelines.
The participating parties signed an agreement with the aim of “establishing an association to provide a global uniform voice for the virtual asset sector.” The V20 president and also founder of the Australian Digital Commerce Association (ADCA), Ronal M. Tucker said about this agreement:
We have begun the process of creating a new body that will help to establish a means of contacting public authorities and the FATF to ensure that our best interests are understood and valued internationally.
The FATF recently accepted new guidelines for so-called virtual asset service providers, in other words, companies that work with crypto. After the announcement, the guidelines received much criticism from both companies and interest groups.
The biggest criticism came from the fact that the FATF requires crypto companies to store a large amount of data from their customers. With this, the FATF is trying to eradicate money laundering and terrorist financing.
Crypto companies, such as cryptocurrency exchanges , should also have a license to operate as virtual asset service providers. Daniel Kelman, legal adviser to Bitcoin.com, said about the new guidelines:
In this way, only recognized and regulated exchanges can participate in a SWIFT-like network for payments between virtual currency service providers. Of course this makes no sense, because this is not how crypto works. Nobody uses an exchange to send money, they will withdraw to their own wallets and send crypto from there to wherever they want,
With the new organization resulting from the V20, large crypto companies hope that their interests will be better represented on the international stage. Now that all participants of the top have signed the agreement, the process to set up this organization has started.