Last week, the G20, a group of 20 major world economies, was held in Buenos Aires, Argentina. The regulation of cryptocurrency was among the main topics debated by the multilateral group. The importance of everything that has been discussed in Argentina can impact the crypto market around the world. The main message was: we will not forbid, but we will regulate the market. The very good news was that there was much doubt about how a group, including China, US, Japan, among others, would address the issue.
DC Forecasts, in partnership with the Criptomoedas Fácil, summarized the main points that were discussed during the meetings. In July, the first concrete proposals for regulation should be presented, so it is important to keep track of all the development themes of cryptocurrencies as Bitcoin, to ensure participation and open the way for investors and institutional markets around the world.
- Cryptocurrency/blockchain should be adopted by the countries
G20 participants have recognized that cryptocurrencies have the power to insert people who are now in the economic system. Moreover, they realize that they realize that they can (and must, accord to the Spanish finance minister) assist governments in broadening welfare policies.
- Nations recognize the demise of the traditional economy
The ministers also agreed that the traditional economy is going through the transition process and that it is no longer possible to separate the digital age from the economy.
- The Regulation is inevitable
The Regulation is an inevitable process, and although the economy is digital, citizens are real and integrated in the country, as well as businesses, so rules need to be imposed, just as there is in other types of business.
- Regulate but not prohibit
Members of the G20 unanimously agreed that cryptocurrencies are important and represent a revolution in the economy and social organizations, so they cannot be banned, but have to go through the regulatory process.
- Regulation will not prevent technology breakthrough, but taxation is almost certain
It was also clear that the regulatory process will be handled very carefully so that hard rules are not imposed that hinder the development of technology. However, the application of fees, which can happen in different parts of the process, are practically certain.
- First regulatory proposals will be presented in July
The central bank presidents, the Financial Action Task Force (FAFT) and the Organization for Economic Cooperation and Development (OECD) will be in charge of the G20 regulatory proposals. The first practical proposals for regulations will be presented in July this year during the 3rd meeting of finance ministers and central bank presidents.
- Preventing crimes
The regulatory proposals will mainly focus on preventing any illicit activity, such as financing terrorism, avoidance of currency, money laundering and also consumer protection, ie avoiding scams being applied through ICOs, cryptocurrency projects, among others.
- Tracking and KYC
There is still no consensus as to how or if crypto actives should be tracked or tagged so that it is possible to identify where they came from and where they are going. However, KYC and Digital Identity standards should be key points in the discussions.
- Europe wants to lead the process outside the G20
Europe intends to lead the process of regulating cryptocurrencies, but will not wait for the G20’s position until July. A group of countries on the continent have set up a working group to discuss the issue and implement practical norms for Europe before even the 20s present their proposals.
Although the subject has not been addressed at official meetings, behind the scenes, the self-regulatory process that has been gaining ground in Japan, Puerto Rico and the US has been highly commented and may eventually gain room on the main agenda.
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