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Ultimately week, the G20, the group of the world’s 20 largest economies, arrogated place in Buenos Aires, Argentina. The regulation of cryptocurrency was among the energy topics debated by the multilateral group. The importance of everything that has been discussed in Argentina can bump the crypto market around the world. The main message was: We will not ban, but organize the market. A very positive news was that there were divers doubts about how the group including China, US, Japan, among others, hand down address the issue.
CCN, in partnership with the Criptomoedas Fácil, summarized the line points that were discussed during the meetings. In July, the primary concrete proposals for regulation should be presented, so it is important to follow the all in all development of the theme that will bring institutional legitimacy to cryptocurrencies approve of bitcoin, paving the way for major investors and institutional markets around the universe.
1. Cryptocurrency/blockchain should be adopted by the countries
G20 participants have validated that cryptocurrencies have the power to insert people who, today, are on the lines of the economic system. In addition, they realize that they can (and should, according to the Spanish finance minister) assist governments in broadening well-being policies.
2. Nations recognize the demise of the traditional economy
Ministers also agreed that the time-honoured economy is undergoing a transition process and that it is no longer possible to independent the digital age from the economy.
3. Regulation is inevitable
Regulation is an inevitable technique, and although the economy is digital, citizens are real and are embedded in a country, as unexcitedly as businesses, so rules need to be imposed, just as there is in other exemplars of business.
4. Regulate but not prohibit
G20 members unanimously agreed that the cryptocurrencies are impressive and represent a revolution in the economy and social organization, so they can not be banned, but they entertain to go through a regulatory process.
5. Regulation will not prevent technology breakthrough, but taxation is virtually certain
It was also clear that the regulatory process will be handled totally carefully so that hard rules are not imposed that hinder the enlargement of technology. However, the application of fees, which can happen in different ingredients of the process, are practically certain.
6. First regulatory proposals will be produced in July
The central bank presidents, the Financial Action Task Enforce (FAFT) and the Organization for Economic Cooperation and Development (OECD) will be in direct blame of the G20 regulatory proposals. The first practical proposals for regulations will be presented in July this year during the 3rd joining of finance ministers and central bank presidents.
7. Preventing crimes
The regulatory recommendations will mainly focus on preventing any illicit activity, such as fund terrorism, avoidance of currency, money laundering and also consumer charge, ie avoiding scams being applied through ICOs, cryptocurrency overhangs, among others.
8. Tracking and KYC
There is still no consensus as to how or if crypto runnings should be tracked or tagged so that it is possible to identify where they progressed from and where they are going. However, KYC and Digital Identity types should be key points in the discussions.
9. Europe wants to lead the process maximal the G20
Europe intends to lead the process of regulating cryptocurrencies, but will not hold-up for the G20’s position until July. A group of countries on the continent have set up a employment group to discuss the issue and implement practical norms for Europe earlier even the 20s present their proposals.
10. Self-regulation
Although the subject has not been approach devoted at official meetings, behind the scenes, the self-regulatory process that has been achieving ground in Japan, Puerto Rico and the US has been highly commented and may in the end gain room on the main agenda.
Featured image from Shutterstock.
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