The world’s economic leaders gathered in Buenos Aires, Argentina for the G20 summit, and sought for proposals of cryptocurrency regulations to come by July 2018 according to the G20 communique. The document backs the words of Frederico Sturzenegger, Argentina’s Central Bank chief, who noted cryptocurrencies need to be examined.
Having seen the document, ICC can confirm that rumblings of a crackdown on cryptocurrencies are out of the picture. It shows the world’s economic leaders seemingly prefer to call cryptocurrencies “crypto-assets,” implying they see cryptos as assets and not currencies.
The G20 communique notably acknowledges the “technological innovation” underlying cryptocurrencies, which has the potential to “improve the efficiency and inclusiveness of the financial system and the economy more broadly.”
It reads that cryptocurrencies raise issues when it comes to consumer and investor protection, tax evasion, market integrity, money laundering and terrorism financing, echoing concerns regulators throughout the world have in the past expressed.
The G20 communique goes on to read:
“Crypto-assets lack the key attributes of sovereign currencies. At some point they could have financial stability implications. We commit to implement the FATF [Financial Action Task Force] 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.”
Not all countries are on board with this approach, however. According to local news outlet El Cronista, Brazil’s Central Bank president Ilan Goldfajn has revealed cryptocurrencies won’t be regulated in his country.
At the end of the communique, it becomes clear that cryptocurrency regulations are coming by July 2018. It reads:
“We ask the FSB [Financial Stability Board], in consultation with other SSBs, including CPMI and IOSCO, and FATF to report in July 2018 on their work on crypto-assets.”
The conclusion the world’s economic leaders seemingly arrived to has been expressed by FSB chief and Bank of England governor Mark Carney, who in a letter sent to G20 finance ministers argued cryptocurrencies ”do not pose risks to global financial stability at this time.”