Blockchain Legal Resource

At the conclusion of its February meeting in Riyadh, the Group of Twenty (G20) Finance Ministers and Central Bank Governors issued a communiqué discussing a wide range of topics, including digital assets and stablecoins. The G20 reiterated its view that technological innovations can deliver significant benefits to the financial system and the broader economy. It remains vigilant to potential risks arising from financial innovations, including those risks related to financial stability, consumer and investor protection, anti-money laundering and countering the financing of terrorism as well as their macroeconomic implications, including monetary sovereignty issues. Building on its 2019 Leaders’ Declaration, the G20 urged countries to implement the recently adopted Financial Action Task Force (FATF) standards on virtual assets and related providers, also known as the “travel rule.” The G20 also reiterated its prior statement in October 2019 regarding global stablecoins and other similar arrangements that such risks need to be evaluated and appropriately addressed before they commence operation, and likewise reiterated its support of the Financial Stability Board’s efforts to develop regulatory recommendations with respect to these arrangements.