G20 Aims to Regulate the Crypto Markets

G20 Aims to Regulate the Crypto Markets

Author: 
Michael R.
Date: 
December 05, 2018
Read time: 
2 minutes
G20
Cryptocurrencies
Regulations

The Group of Twenty (G20) is an international forum for governments and central banks across 19 countries and the European Union which recently included cryptocurrency regulation in one of its latest declarations. The declaration was not entirely about cryptocurrencies but instead focused on several other topics they feel are important such as financing early childhood programs and public policies.

The Group of Twenty (G20) is an international forum for governments and central banks across 19 countries and the European Union which recently included cryptocurrency regulation in one of its latest declarations. The declaration was not entirely about cryptocurrencies but instead focused on several other topics they feel are important such as financing early childhood programs and public policies.

Section 24 is where they mention cryptocurrencies:

“We will step up efforts to ensure that the potential benefits of technology in the financial sector can be realized while risks are mitigated. We will regulate crypto-assets for anti-money laundering and countering the financing of terrorism in line with FATF standards and we will consider other responses as needed.”

This is the only mention of crypto throughout the 8-page declaration. The emphasis is really put towards anti-money laundering, anti-terrorism, and tax evasion, which is understandable. Many of the countries that are part of the G20, including the United States, have already recognized cryptocurrencies and expect taxes to paid by citizens.

cryptomaniaks

What does this mean?

In our opinion, this declaration is not a threat - in fact, regulation can expedite innovation at this stage. South Korea has already given the green light for banks to work with exchanges, and now, South Korea has the largest trading volume in the world. While we understand that regulation can increase the amount of legal headache and capital required to start a money service business, it does not seem that regulators have put extra regulation around crypto compared to the traditional financial market.

G20 has not made specific comments around regulation, so we should not jump to conclusions. Rather than banning or demonizing cryptocurrencies, regulators are willing to work with it. Overall, this is another positive fundamental that can drive the market forward toward mainstream use.

If you are interested in joining the new cryptocurrency movement, check out our start investing guides to get started!

 

G20 image courtesy of: https://www.flickr.com/photos/g20argentina/37865786425

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