The highly anticipated G20 discussion on potential cryptocurrency regulation took place yesterday afternoon in Buenos Aires. While no new policies emerged after the meeting, the G20 set a firm deadline of July 2018 for proposals on global crypto regulation.
G20 members seek more information on crypto
After finance ministers and central bank governors met on Tuesday, Argentina Central Bank chair Federico Sturzenegger spoke at a press conference, saying present member nations agreed that more examination was necessary before any new regulations could be implemented. Nonetheless, Sturzenegger emphasized that all members came to a consensus on a July deadline for regulation proposals, stating:
In July we have to offer very concrete, very specific recommendations on, not ‘what do we regulate?’ but ‘what is the data we need?’
Among the issues to be discussed in July are consumer and investor protection, tax evasion, and money laundering, all of which have been increasing concerns throughout the world.
Differing opinions on regulation
For the time being, the G20 has expressed a commitment to apply the Financial Action Task Force’s standards “as they apply to crypto-assets.” However, it appears not all countries are on board with enforcing regulation. According to news outlet El Cronista, Brazil Central Bank president Ilan Goldfajn said Brazil will not be regulating cryptocurrencies anytime soon.
It is also worth noting that the G20 Financial Stability Board (FSB) rejected the call to crackdown on cryptocurrency. In a letter published this past Sunday, FSB chair Mark Carney noted that, as they currently stand, “crypto-assets do not pose risks to global financial stability at this time.” Nevertheless, regulation might be reconsidered in the future.
Markets continue to recover
It is evident that the G20 countries will have to be more open to collaboration if they hope to make more strides toward the global regulation of cryptocurrency. For now, investors are able to breathe a sigh of relief as the market enters into a recovery, which is believed to have been spurred on by Carney’s comments and the news coming from this week’s meetings.
It will be interesting to see what regulation, if any, will emerge in G20 countries leading up to July’s deadline.
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