The G20 summit held its annual meeting this weekend in Osaka, Japan. Among the many topics discussed was crypto regulation. This is one of eight planned priorities during Japan’s G20 presidency. During the meeting, Japanese Finance Minister Taro Aso said that crypto assets do have the potential to be used for illicit activities. However, he believes that the positives of crypto assets outweigh the negatives. He also said that it is important to nurture innovation while also protecting consumers. Crypto regulation was just one of many topics discussed at the G20 summit. Other topics included trade tensions between the US and China, as well as climate change. Sign up here if you want more details on crypto trading and investments.
About G20?
In recent years, the G20 has taken on an increasingly important role in regulating the global economy, including cryptocurrencies. In 2019, under the Japanese presidency, the G20 stated cryptocurrencies that called for greater regulation of the asset class.
As we enter 2020, it is clear that crypto regulation is high on the agenda for the upcoming G20 meeting. With more and more countries taking steps to regulate cryptocurrencies, we will likely see some progress made on this front at the meeting.
What are G20 priorities?
– Addressing emerging global economic and financial risks and vulnerabilities
– Promoting global economic growth and improving employment outcomes
– Strengthening international financial stability
– Promoting international tax cooperation and transparency
– Enhancing anti-corruption measures
One of the G20’s stated priority areas for 2019 is addressing “emerging global economic and financial risks and vulnerabilities.” This includes, but is not limited to, risks posed by cryptocurrencies. In line with this priority, the G20 has been working on developing a regulatory framework for cryptocurrencies.
While there is no formal agreement among G20 members on how to regulate cryptocurrencies, the consensus is that regulation is necessary to protect investors and prevent money laundering. In 2018, the Financial Action Task Force (FATF), an intergovernmental body that sets standards for combating money laundering, released guidelines on how countries should regulate cryptocurrencies. These guidelines are non-binding, but they provide a common framework that G20 members can use when crafting their regulations.
The G20 has also been discussing other possible measures to address risks posed by cryptocurrencies, such as creating a task force dedicated
What are regulators doing about it?
In the wake of the global financial crisis, regulators have been focused on improving the stability of the financial system. One of their key priorities has been to ensure that banks and other financial institutions have enough capital to absorb losses during periods of stress.
In recent years, however, another source of risk has emerged: crypto assets. These assets are not regulated in the same way as traditional financial assets, and their prices can be highly volatile. As a result, some investors have been putting money into crypto assets in the hope of making quick profits.
This has raised concerns among regulators about the potential for crypto assets to destabilize the financial system. In response, several central banks and other authorities have begun looking into ways to regulate crypto assets.
One approach that has been suggested is to treat crypto assets like other investments, such as stocks or bonds. This would mean subjecting them to existing regulations, including those around anti-money laundering and countering the financing of terrorism.
Another approach is to create new rules specifically for crypto assets. This could involve setting up a new regulatory framework that covers issues such as how they are traded and what disclosures need to be made to investors.
Whatever approach is taken, it is clear that regulators will need to pay close attention to developments in the world of crypto assets. With prices remaining volatile and investor interest high, there is a risk that these assets could cause problems for the financial system if left unchecked.
What are Russia’s plans?
In his first term as president, Vladimir Putin made it a priority to regulate the cryptocurrency industry. This is in line with his general philosophy of government control over the economy.
Putin believes that cryptocurrencies can be used to finance crime and launder money. He wants to bring the industry under state control to prevent these activities.
The Russian government has been working on a bill to regulate cryptocurrencies for several months. The bill is now ready to be submitted to parliament.
The bill would classify cryptocurrencies as property, rather than currency. This would allow the government to tax profits from their sale.
Critics of the bill say that it will stifle innovation and hamper the growth of the cryptocurrency industry in Russia. They argue that other countries are taking a more relaxed approach to regulation, which will give them a competitive advantage.
Conclusion
This is good news for the cryptocurrency industry, as regulation will bring more legitimacy and stability to the market.
The G20 presidency’s focus on crypto regulation shows that the world’s leading economies are taking digital assets seriously, and this could lead to more mainstream adoption in the future. For now, we will have to wait and see what concrete steps are taken by the G20 during its presidency.