Bitcoin

G20 Summit Calls For Setting Global Standards To Regulate Cryptocurrency

In the just concluded G20 Summit, the leaders of the world’s 20 major economies vowed to step up efforts to ensure that the potential benefits of technology in the financial sector can be realized while risks are mitigated.

G20 leaders made the call in a “Joint Declaration On Fair And Sustainable Development”, adopted by the heads of state or government.

The statement, issued at the end of the summit in Argentina capital Buenos Aires on Saturday, affirms that an open financial system is crucial to support economic growth.

“We will continue to monitor and, if necessary, tackle emerging risks and vulnerabilities in the financial system; and, through continued regulatory and supervisory cooperation, address fragmentation. We look forward to continued progress on achieving resilient non-bank financial intermediation,” the G20 leaders said in the declaration.

“We will regulate crypto assets for anti-money laundering and countering the financing of terrorism in line with FATF [Financial Action Task Force] standards and we will consider other responses as needed,” the statement says.

In the wake of the growing popularity of the crypto trade and the frauds and risks it entails, pressure is mounting on governments to develop standards for crypto regulations.

The European Parliament earlier this year had recommended that regulations concerning virtual currencies should be harmonized across jurisdictions, and that investment in cryptos should be taxed similarly to investment in other financial assets.

A British parliamentary committee in August had called on the government to introduce regulation to protect investors from the current “Wild West” situation in the crypto-asset market.

Only very few countries, such as Gibraltar, have introduced regulations for blockchain-based businesses.

The risks involved in investments in virtual currencies include possibility of fraud, bankruptcy of the issuer or intermediary, or speculative bubbles and bursts, among others.

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