During the recent G20 meeting in Argentina, when most media concentrated on U.S. President Donald Trump signing a new trade agreement with his counterparts in Canada and Mexico or meeting with China’s President Xi, something else was going on.
The leaders of the 20 nations issued a declaration saying something has to be done to regulate cryptocurrencies, Bitcoin.com reported. The heads of state said that while an open financial system supports economic growth, international regulatory standards are needed for cryptocurrencies and other emerging technologies.
“We will continue to monitor and, if necessary, tackle emerging risks and vulnerabilities in the financial system; and, through continued regulatory and supervisory cooperation, address fragmentation. We look forward to continued progress on achieving resilient non-bank financial intermediation,” according to the G20 statement. “We will step up efforts to ensure that the potential benefits of technology in the financial sector can be realized while risks are mitigated. We will regulate crypto assets for anti-money laundering and countering the financing of terrorism in line with [Financial Action Task Force] standards and we will consider other responses as needed.”
This is not the first time the G20 has discussed cryptocurrencies, saying in March it is committed to implementing FATF standards that protect consumers when it comes to crypto.
And then there’s the matter of the nations themselves, some of which have stronger rules on crypto than others. China, for instance, bans cryptocurrencies but encourages blockchain technology, within limits. The UK, by contrast, continues to debate and, if lucky, might get around to enacting regulation in two years, by at least one estimate. The Brussels think-tank Breugel called on the European Union to come up with common cryptocurrency rules back in September.
Maybe some sort of compromise can be worked out by the time the G20 nations next meet June 28–29, 2019, in Osaka, Japan.