Crypto Crackdown To Be Enforced After G20 Summit Meeting
Finance ministers from around the globe discussed the security and future of cryptocurrency laws at this year’s G20 summit in Buenos Aires and have set a July deadline for a unilateral approach to regulation, dubbed a crypto crackdown.
The discussions come after years of speculation and intermittent regulatory attempts from many countries, including some rather innovative ways to limit mining in South Korea or increase security in Nigeria. But with billions of dollars being traded using digital tokens through exchanges and wallets, the issue of crypto security and regulation was on the docket for this year’s G20.
It has been agreed that the Financial Action Task Force (FATF), which is an intergovernmental organisation created to counter money laundering and terrorist financing, will apply its standards to cryptocurrency policy.
“We commit to implement the FATF standards as they apply to crypto-assets, look forward to the FATF review of those standards, and call on the FATF to advance global implementation. We call on international standard-setting bodies (SSBs) to continue their monitoring of crypto-assets and their risks, according to their mandates, and assess multilateral responses as needed,” said the G20.
“We acknowledge that technological innovation, including that underlying crypto-assets, has the potential to improve the efficiency and inclusiveness of the financial system and the economy more broadly. Crypto- assets do, however, raise issues with respect to consumer and investor protection, market integrity, tax evasion, money laundering and terrorist financing,” added the G20 in a statement.
And while there was a general agreement on these first baby steps, not every country was willing to comply off the bat. Brazil Central Bank president Ilan Goldfajn said cryptocurrencies will not be regulated in his country, according to El Cronista.
The world’s most famous – and arguably secure – cryptocurrency, Bitcoin, has endured somewhat of a dip over the past week, dropping below $8k. But the news of this increased and collective effort has seen prices react well, with the current price standing over $9k. Many detractors have argued that Bitcoin’s volatile prices will mean it can never be a truly viable alternative to currency as the values fluctuate so much, but a worldwide regulation of cryptocurrencies could see that settle into a softer pattern as fears over security and longevity are put to bed.