Cryptocurrencies rise again as G20 calls for regulation recommendation
As the news out regarding the regulation of cryptocurrency by the world’s economic leaders. The cryptocurrencies started rising in the value.
After the G-20 meeting of finance ministers that was held on 18th March,2018 in Buenos Aires, Central Bank of Argentina chair Mr.Frederico Sturzenegger explained that the members who attended the summit agreed on examination of cryptocurrencies. They are also agreed on the regulations of cryptocurrency.
“In July we have to offer very concrete, very specific recommendations on, not ‘what do we regulate?’ but ‘what is the data we need?’”
He also added that more information is required before regulating cryptocurrencies and for taking first step toward the unified regulation of cryptocurrencies the world’s economic leaders set July, 2018 as dead line.
But there were some nations on the board that didn’t agree with the plan of regulating cryptocurrencies in their countries. One of them was Brazil. According to news service EI Cronista in summit the president of Brazil Central Bank Mr.Ilan Goldfajan said that cryptocurrencies wouldn’t be regulated in Brazil and he also added that Brazil surely is not going to follow the regulations on outlined by the G20.
“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.
According to the statement given above, G-20 explained that during summit, The G20 pledged for cryptocurrencies to apply the standards of FATF(The financial action task force )that is an intergovernmental body formed to fight against money laundering and financing activities by terrorist.
The discussion was done after being inspired by the closer look at the cryptocurrencies by France, Germany, US and Japan over the calls from past many months
In the summit both Central bankers and government officials were promoting to take proper and closer attention on the matter of how cryptocurrencies leaving it’s impact on criminals as well as buyer/investors all over the world.
France and Germany’s financial officials mentioned in their joint letter that cryptocurrencies could pose substantial risks for investors
Mr.Steven Mnuchin-The U.S Treasury secretary and an official from govt.of Japan also expressed their concern about the use of cryptocurrencies for illegal activities.
In summit there were some major regulators that agreed on the major impacts of Cryptocurrencies on the Global Financial System stated by citing the relative size of cryptocurrency market cap that “crypto-assets do not pose risks to global financial stability at this time,”
He also added that Cryptocurrencies make up less than 1 percent of the global gross domestic product (GDP and the credit default swaps were equal to the global GDP in 2008.
Many officials who attended the summit called for a global set of regulations and also mentioned that every country would be able to enforce, but it is unclear how far discussion on possible regulations has gotten.
The public document that was released prior to meeting was to promote the financial inclusion but it was also mentioned to note about the impact of cryptocurrencies on the financial institutes and also about the financial stability and potential uses in tax evasion and illegal activities. It is required to understand first before taking any decision and also before regulating it.
Conclusion:- over all it is good news for cryptocurrency lovers and it is also seen that there is improvement in price of cryptocurrencies and the market cap of cryptocurrencies also improved and it is expected that cryptocurrencies will move in it’s full flow.
