The upcoming G20 Summit is in the process of holding meetings between several government officials preceding the leaders’ summit, which is to be held from November 30 – December 1, 2018.
In the latest slew of those meetings, the finance and central bank officials from participating countries came together in order to discuss key points on various aspects of the financial sector. To no one’s surprise, cryptocurrencies remained a hot topic of discussion between them.
Finance officials from g20 discuss cryptocurrency regulations
Mark Carney, chair of the Financial Stability Board (FSB), which is in charge of coordinating financial rules and regulations for G20 member countries, stated that there is a need to review existing regulations and discussing them further rather than imposing new ones for the sake of doing so.
Speaking to the press, Carney also stated that cryptocurrencies do not seem to hold a threat against the global financial climate.
“The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time.” Carney mentioned.
However, he also stated that these digital assets do hold a “host of issues” when it comes to the protection of their investors.
Following Carney’s comments and subsequent extensive discussions between the finance and central bank heads at the summit, the nations agreed upon gathering tangible data on existing cryptocurrency regulations and discussing them in their meeting scheduled for July 2018.
French finance minister gets his wish for bitcoin discussions at g20 summit
These developments followed last year’s remarks from the Finance Minister of France, Bruno Le Maire, on discussing cryptocurrency regulations during the summit.
“There is evidently a risk of speculation. We need to consider and examine this and see how (…) with all the other G20 members we can regulate bitcoin.” Le Maire had stated at the time.
Further Concluding Remarks
An important statement issued, provided some sort of guidance on how they would leave the matter of cryptocurrencies for now.
“We recognize that technological innovation, including that underlying crypto-assets, has tremendous potential of improving the efficiency and inclusiveness of the financial system and the economy in a much more broader scope. Even still Crypto-assets arguably raise issues with regards to investor and customer protection, tax evasion, market integrity, money laundering and possibly funding terrorist malpractices.”
As noted above, the continuous line of money laundering, funding of terrorism and more continue to be psychologically attached to cryptocurrencies posing threats to the psuedo anonymous or in some cases completely anonymous nature of these currencies. This might pose more problems to privacy coins in regards to value and speculation on exchanges, as exchanges might recieve notices to figure out how to make sure these coins comply with AML and KYC regulations.
“Crypto-assets do not have the key attributes of sovereign currencies. They could probably have financial stability implications in the near future. We commit to applying the FATF standards as they are obligated to crypto-assets, we also look forward to the FATF review of those standards and request the FATF to advance global implementation. We call on international standard-setting bodies (SSBs) to ensure their continued checking of crypto-assets and their risk factors, as per their directives, and if needed to freely assess multilateral responses.”