G20 nations set deadline for cryptocurrency regulations

   Following the first day of G20 meeting in Argentina, G20 nations set deadline for cryptocurrency regulations recommendations for July 2018. In addition, the member nations have reached a consensus regarding the necessity to examine cryptocurrencies.

   The economic leaders of global nations have reportedly set a deadline for the first step in regards to the unified regulation of cryptocurrency markets for July 2018. As per Argentina Central Bank chair Frederico Sturzenegger, who was speaking after the G20 meeting of finance ministers, the member nations have reached a consensus regarding the necessity to examine cryptocurrencies.

   Argentina Central Bank chair has stated that the countries would need more information before making any regulatory decisions. Yet, during the press conference, he has highlighted that the members had agreed on a deadline in July to set out recommendations. He has been quoted as saying:

“In July we have to offer very concrete, very specific recommendations on, not ‘what do we regulate?’ but ‘what is the data we need?’”

   However, it appears that not all nations are ready to commit to this plan. For instance, Brazil Central Bank president Ilan Goldfajn said cryptocurrencies will not be regulated in his country. Online reports stated that Brazil would not be following the regulations set out by the G20 nations in relation to the cryptocurrencies.

   The draft of G20 document, according to some of the online reports, states that cryptocurrencies “lack the traits of sovereign currencies.”  This implies that G20 potentially considers cryptocurrency to be an asset rather than a currency.

G20 to follow FATF standards

   The G20 promised to apply the rules of the Financial Action Task Force (FATF) to cryptocurrency markets. The latter is an intergovernmental body designed to combat money laundering and terrorist financing. The G20 has released a statement, which reads:

“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 (SSB) to continue their monitoring of crypto-assets and their risks, according to their mandates, and assess multilateral responses as needed.”

It is also known that G20 cryptocurrency discussions were pushed forward thanks to the initiative by France, Japan, Germany and the US.

   Some of the central bankers and other officials are now closely investigating the impact of cryptocurrencies on crime, world economy, and investors. Some of the officials attending the summit have called for a global regulations framework that should be enforced in every country.

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