G20 To Regulate Cryptocurrencies
The G20 members agreed to regulate crypto assets within the financial reform, aimed at supporting economic growth. It is stated in the final declaration, which was signed after the summit in Buenos Aires on December 1.
The leaders of G20 will step up efforts to take full advantage of technologies for the emerging economy and to minimize risks. To do this, the countries will oversee the financial system and eliminate its vulnerabilities.
In particular, paragraph 25 of the document deals with the joint regulation of the digital assets sphere. The G20 countries will mainly tackle the cases of using cryptocurrency for money laundering and funding terrorism. The declaration mentions that the regulation will be carried out under the standards of FATF (Financial Action Task Force on Money Laundering).
Also, the summit participants will continue to work on a modern and sustainable tax system, which will be applied to cryptocurrencies as well. It is noted that in 2019, the G20 leaders will seek solutions to address the challenges in the international tax system, that have arisen due to the digitalization of the economy. The governments will introduce their proposals in the 2020 report.
Recently, FATF has urged legal authorities around the world to register and regulate digital exchanges and crypto wallets providers, as well as firms that support ICO fundraising campaigns. The organization intends to approve the first set of rules on the regulation of cryptocurrencies by mid-2019.
Previously, the World Trade Organization estimated that blockchain can bring $3 trillion to the world economy.