Twenty Virtual Asset Services Providers (VASPs) came together at the V20 Summit, an annual event held in parallel to the G20 meet. And for those oblivious to the importance of V20, holding the event alongside the G20 isn’t just an empty statement meant for PR wins, as both summits jointly define global financial policies.
The key purpose of this year’s V20 summit was to announce specific industry proposals in response to the FTX collapse and TerraUSD crash, as well as its contagion effect, which led to crypto firms defaulting on their obligations.
The participating VASPs proposed to implement a better mechanism to enable VASPs to discover one another for better counterparty risk management and enhance compliance requirements.
Shyft Veriscope (Shyft Discover + Veriscope Share) is among the top of all available crypto Travel Rule Solutions.
What makes it unique? Click to learn:
The participant VASPs also proposed harmonizing reporting thresholds for transfers across jurisdictions, shifting to a principles-based risk management approach, and creating "a working group between Privacy regulators, FATF, and the International Organization of Security Commissions (IOSCO)."
The proposal also outlined the need for increased collaboration between the FATF and the Global Privacy Assembly to enhance understanding of data privacy and also called for the FSB to draft regulations considering the uniqueness of the crypto industry.
The summit provided a stage for the industry to interact and exchange with global regulators, such as the Financial Action Task Force (FATF) and the Financial Stability Board (FSB).
"It is crucial for the private sector and public sector to work closely together to establish close partnerships and share information and expertise," said FATF President Raja Kumar.
While acknowledging the importance of industry cooperation in addressing financial crimes, Kumar noted that the nascent virtual assets industry acts as "a key entry point into the financial system," which makes it the gatekeeper — "the crucial first line of defence."
Many issues that regulators raised were discussed behind closed doors, and they acknowledged the need for more robust governance frameworks in the industry.
"Crypto assets and markets provide many of the same economic functions as traditional financial markets. As they do so, they must be subject to effective regulation and oversight commensurate with risk staples," said FSB Secretary General Dietrich Domanski.
The proposals presented at V20 will expand cooperation, enhance dialogue between the regulators and the crypto industry, and improve the existing regulatory and compliance infrastructure. Also, the industry agreement to use a decentralized VASP discovery system to streamline Travel Rule compliance across exchanges is a major victory for the industry.
VASPs need a Travel Rule Solution to begin complying with the FATF Travel Rule. So, have you zeroed in on it yet? Check out Veriscope, the only frictionless crypto Travel Rule compliance solution.
Visit our website to read more: https://www.shyft.network/veriscope and contact our team for a discussion: https://www.shyft.network/contact
Also, follow us on Twitter, LinkedIn, Discord, Telegram, and Medium for up-to-date news from the world of crypto regulations. Also, sign up for our newsletter to keep up-to-date on all things crypto regulations.