The world economic leaders from the World’s top 20 economies have set a firm deadline of July 2018 for proposals on global regulation of the cryptocurrency sphere. Finance policymakers and Central bankers from the world’s 20 largest economies who attended the G20 Summit meeting in Buenos Aires Argentina called on regulators to monitor cryptocurrencies but stopped to stop short of any specific action. This was echoed by Argentina Central Bank Chairman Frederico Sturzenegger who said on Tuesday after G20 meeting that member nations present agreed that cryptocurrencies needed to be examined, but that more information was required before any regulations could be proposed.
During the conference, Frederico Sturzenegger stated:
“In July we have to offer very concrete, very specific recommendations on, not ‘what do we regulate?’ but ‘what is the data we need?”
Divided opinions on cryptocurrency regulation
Not every nation is in consent to this plan to regulate the booming industry. Brazil Central Bank president Goldfajn said digital currencies would not be regulated in Brazil, according to news service El Cronista. Furthermore, he added that he would not necessarily be following the G20 recommendations on Cryptocurrency or other Issues
G20 also welcomed and agreed upon all members present that new standard to be proposed by the Financial Action Task Force (FATF), An intergovernmental body formed to fight money laundering and terrorist financing – would have its standards applied to the cryptocurrency markets in the respective countries.
In a statement released on 20 Feb 2018, the G20 said:
“We commit to implement the FATF 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.”
The main reason for the G20’s inaction is that they see digital currencies as too small to threaten financial markets. Cryptocurrency combined market value was, at its peak, less than 1% of GDP, as the Chairman of the Financial Stability Board (FSB) Mark Carney told the G20 in a letter.