{"id":5491,"date":"2020-11-25T23:30:41","date_gmt":"2020-11-25T23:30:41","guid":{"rendered":"https:\/\/www.sygna.io\/?p=5491"},"modified":"2020-11-28T12:37:32","modified_gmt":"2020-11-28T12:37:32","slug":"virtual-v20-summit-seeks-industry-response-against-fatf-travel-rule","status":"publish","type":"post","link":"https:\/\/www.sygna.io\/jp\/blog\/virtual-v20-summit-seeks-industry-response-against-fatf-travel-rule\/","title":{"rendered":"Virtual V20 Summit Updates Industry Response To FATF Crypto Regulations"},"content":{"rendered":"\n

The 2020 edition of the V20 Summit<\/a> was held virtually last week, once again bringing together key blockchain stakeholders, government officials, regulators, virtual asset service providers (VASPs), and technical solution providers (TSPs) to discuss crypto regulations. <\/p>\n\n\n\n

Promoted by this year’s rallying slogan “Define the Future”, the V20 seeks to create an industry response to the global anti-money laundering (AML) watchdog, the Financial Action Task Force (FATF)’<\/a>s regulatory requirements, most notably the Recommendation 16 “Travel Rule”<\/a>. <\/p>\n\n\n\n

The three-day virtual event took place from November 16 – 18 2020 to build on the groundwork laid down by last year’s inaugural summit held in Osaka, Japan last year.<\/p>\n\n\n\n

V20 Agenda Overview<\/h2>\n\n\n\n

The first day of the summit provided<\/a> a platform where regulators and FATF discussed their views on the association of virtual assets with money laundering and terrorist financing (ML\/TF) risks. <\/p>\n\n\n\n

The second day was only reserved for VASPs, giving the industry representatives a private space to address the concerns raised by regulators. <\/p>\n\n\n\n

The final day largely focused on industry-specific discussions, technical solution providers<\/a>, and the submission of key takeaways to regulators.<\/p>\n\n\n\n

CoolBitX Managing Director International and Sygna spokesman Elsa Madrolle<\/a> participated on Day 3 of the event in a panel discussing the progress that FATF Travel Rule technical solution providers are making.<\/p>\n\n\n\n

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Industry critical of FATF regulations<\/h2>\n\n\n\n
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Sian Jones, the respected industry organizer, JWG convener and senior partner at XReg Consulting, criticized the FATF’s intervention in crypto, imploring it to consider developing new approaches to manage money laundering and terrorist financing risks associated with virtual assets. <\/p>\n\n\n\n

“…The tried and tested methods work, after a fashion, in the traditional world of money. Arguably, they can be made to sort of fit the intermediated crypto world. They do not necessarily fit a DeFi world where they are not fit for purpose.\u201d<\/p><\/blockquote>\n\n\n\n

Jones further stated that FATF doesn’t seem to fully understand that cryptocurrencies were not created to necessarily circumvent authority and break laws, but to rather “disintermediate traditional finance”.<\/p>\n\n\n\n

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V20 connects regulators and industry<\/strong> assocations<\/h2>\n\n\n\n
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Regulatory participants included several respected regulatory bodies such as the U.S. Department of Treasury, the Financial Crimes Enforcement Network (FinCEN)<\/a>, Japan Financial Financial Services (JFSA<\/a>) and the Monetary Authority of Singapore (MAS)<\/a>.<\/p>\n\n\n\n

Global Digital Finance (GDF)<\/a>, the influential blockchain industry body (of which CoolBitX is a member) and the International Digital Asset Exchange Association (IDAXA<\/a>) again partnered as hosts of the summit. <\/p>\n\n\n\n

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IDAXA was formed at the 2019 V20 summit to help the crypto industry engage with the FATF. Its chairman Anson Zeall acted again as V20 convener this year and is also leading the Singapore self-regulatory organization ACCESS SG, which recently released an independent assessment of the Sygna Bridge<\/a> network. The Chamber of Digital Commerce also supported the virtual event. <\/p>\n\n\n\n

Together the GDF, CDC and IDAXA earlier this year combined under the auspices of the Joint Working Group<\/a> to release the new InterVASP Messaging Standard<\/a> (IVMS101), which allows various technical solution providers to develop interoperability with each other based on a unified language data standard.<\/p>\n\n\n\n

Since then, Sygna creator CoolBitX has announced an interoperability Proof-of-Concept (PoC) with Ciphertrace’s TRISA,<\/a> and are currently working with other technical solution providers on further tests. <\/p>\n\n\n\n

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Building on Osaka 2019’s V20 Summit <\/strong><\/h2>\n\n\n\n
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The V20 Summit was first held last year, in parallel with the G20 summit, to foster collaboration between the nascent cryptocurrency industry and regulators to deliver a standard response to the guidelines proposed by the FATF.<\/p>\n\n\n\n

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https:\/\/t.co\/GBVlkhUOgb<\/a>

A lot of learnings today. Memories of osaka.<\/p>— Anson Zeall (@0xa8l) November 17, 2020<\/a><\/blockquote>