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G20 Calls for Cryptocurrency Vigilance, Eyes October 2018 Deadline for Standardized AML Monitoring

The G20 says cryptocurrencies do not pose a threat to the global financial system. Notwithstanding, the G20 wishes to maintain a careful observance of the emerging market to preventing its use in illicit financial activities. Earlier in the month, the Financial Stability Board (FSB) had issued a press release saying the same thing.

G20 Agrees With FSB

The G20 member states declared their position as part of a communique issued on Sunday (July 22, 2018). According to the communique, the G20 believes that cryptos and their underlying technologies can significantly benefit diverse sectors of the global economy. Many experts believe that blockchain technology can be applied to solve problems in different areas of the global business process.

Crypto-assets do, however, raise issues with respect to consumer and investor protection, market integrity, tax evasion, money laundering, and terrorist financing. Crypto-assets lack key attributes of sovereign currencies. While crypto-assets do not at this point pose a global financial stability risk, we remain vigilant.

In a recent letter to the finance ministers and central bank governors of G20 member states, the FSB had given the same assessment. The FSB also announced that it was working in collaboration with the Committee on Payments and Market Infrastructures (CPMI). The two agencies aim to create a robust, standardized framework for monitoring cryptocurrencies. In the lead up to the G20 summit of March 2018, FSB chairman, Mark Carney told the G20 that Bitcoin and other cryptos didn’t pose any threat to global finance as well.

G20 Wants Standardized AML Monitoring for Cryptocurrency

Earlier in the year, Japan called on the G20 to look into the use of cryptocurrency in money laundering and terrorist financing. It appears the Group is now seriously making efforts towards establishing a standardized monitoring framework to combat the use of cryptos in illegal financial activities.

According to Sunday’s communique:

We [the G20] welcome updates provided by the FSB and the SSBs and look forward to their future work to monitor the potential risks of crypto-assets and to assess multilateral responses as needed. We reiterate our March commitments related to the implementation of the FATF standards, and we ask the FATF to clarify in October 2018 how its standards apply to crypto-assets.

Do you agree with the G20’s assessment of the emerging cryptocurrency market? Keep the conversation going in the comment section below.

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South Korea to Loosen Crypto Regulations

The South Korean government has stated its intention to facilitate a favourable regulatory framework for cryptocurrency use, adoption of blockchain technologies and trading in general.

The information was shared by the Korea Times, mentioning that financial regulators are seeking to establish a set of “unified regulations” compatible with the policies promoted by G20 member countries.

It is important to note that after the G20 summit held in Argentina, the general consensus was to establish a tentative date for starting this work. After discussing the most convenient time frame, the month of July was set as deadline.

According to the Korean newspaper, The Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) are working together to ensure the best enforcement of legal policies regarding cryptocurrency exchange operators.

It is important to note that the government has been emphasizing that it is not opposed to the use of cryptocurrencies; however, money laundering is a crime for which they have demonstrated a zero-tolerance policy.

In a statement to the Korea Times, an unidentified official said that even though there will not be a radical reform in cryptocurrency policies in the short term, it is possible that in the medium to long term that goal will be achieved by a series of gradual changes:

Any major reversal in policies is unlikely, but the government seems to believe a gradual shift in attitude toward crypto-based assets is needed. What regulators should do is figure out how to regulate them properly and prudently as Korea needs to put more emphasis on blockchain technology after obtaining knowhow and understanding of the possible flipside of cryptocurrency trading

The G20 considers July to be a reasonable date. Nevertheless, for this group of nations, the use of cryptocurrency does not yet represent a risk for traditional financial markets.

bitcoin commodity money millionaireIn a similar vein, the Korean government hopes to regulate the ICOs so that they have a legal status. Rep. Hong Eui-rak of the ruling Democratic Party said lawmakers are “working on a bill” to lift the ban that the government had previously ordered.

Previously, negative government announcements had the most adverse effects on markets. These positive announcements should then generate a correspondingly similar reaction. Anyways, one thing that is easy to take for granted is that now there is undoubtedly a political will to make Korea a more crypto-friendly country.

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3 Reasons To Be Bullish About Ripple (XRP)

Ripple(XRP) is up 5.97% in 24 hours and is currently trading at $0.695.This is a welcome relief after its recent low of $0.55 on March 18th. This was partly due to the announcement that Google will be banning all crypto related advertisements. Google will no longer allow ads on any crypto, ICOs, wallets and trading devices across any of its ad platforms. One reason for this was for the search engine giant to reduce on the number of crypto scams piggy backing on its ad services. This was a big blow to even the legitimate projects such as Ripple (XRP).

But there is no need to despair. There is a silver lining in all this FUD. There are indeed a few reasons to remain Bullish about Ripple (XRP)

Firstly, and in a show of indirect support, Mark Carney, Governor of the Bank of England and Director of the Financial Stability Board (FSB) – an international meeting group for central bankers – released a letter on Sunday the 18th of March stating that all crypto related assets do not pose any major risk to the global financial system. Carney with his comments and being the Chief Whip of the global central banks and a spokesperson for the G20’s financial elite, caused a majestic market response as soon as his statements were made public. This means that all the FUD about government crackdowns and strict regulation can be put aside for the foreseable future.

The market has responded positively to this news as can be seen by the rise of Ripple from $0.55 on the date of the Carney announcement, to $0.695 at the moment of writing this. This is a  26.4% increment in two days.

A second reason to be bullish about Ripple (XRP) is the self evident revolution that Ripple technology is bringing to the world of banking and finance. With the three already functioning products of xVia, xRapid and xCurrent, Ripple is slowly forming banking partnerships on a daily basis and also with money remitting service providers. This is because its technology based on the blockchain, has been able to ease banking and money remittance transactions that used to take days, to a mere 3.3 seconds on the blockchain. The list of partnerships is endless but the notable names are Western Union, Moneygram, SBI Banking Consortium, UBS bank and Bank of America. This means that the market is positive for the Ripple company that was formed only in 2012 and has made significant strides in such a short time period.

The third and not necessarily last reason to continue being bullish about Ripple (XRP) is the unconfirmed rumor that Ripple Futures are in the pipeline at Wallstreet. When such rumors start to circulate, this means that XRP is turning heads in the global stock markets of London, Chicago, New York, Hong Kong, Tokyo, just to name a few. The only downside of XRP futures, is the fear that the price of XRP might be affected in a manner similar to how BTC futures are dubbed as the cause of causing the drop of Bitcoin (BTC) from $20,000 per BTC, to the current volatile level that is yet to touch $10,000 once more.

All in all, the banking industry, global central banks and stocks and commodities markets are noticing Ripple (XRP). All this attention is sure to have an effect on the coin. Perhaps this is why there are predictions of the coin making the much anticipated $10 by the end of the year. The HODLers are very optimistic about this prediction.