Global leaders have gathered again at the end of this year to discuss crucial matters in the world at the G20 summit. Their topics have included the growing subject of cryptocurrencies and related regulations. The summit brought together both international government officials and representatives from the world‘s largest corporations, such as Bank of America or the World Trade Organization.
One of the key discussions of the summit was creating an open and resilient financial system that is equally beneficial for all participants and follows international regulation.
The subject led to cryptocurrencies as well. The parties agreed that in order to battle fraud and money-laundering in the financial markets, they needed to impose more regulations on crypto-markets.
A declaration released by the forum read:
“We will regulate crypto-assets for anti-money laundering and countering the financing of terrorism in line with FATF standards and we will consider other responses as needed.”
For many years G20 had an open approach towards cryptocurrencies, due to some encouragement from progressive countries like Japan. Japan is the second largest crypto-market with a healthy ecosystem for startups and traditional companies.
During the last few years many countries have already developed their individual regulations towards cryptocurrencies. The effort to regulate the international cryptocurrency market could encourage countries like Russia, Argentina and India to establish regulations around this new asset class.
While excessive regulation can halter new business growth, G20 is only aiming to even out international regulatory requirements, and encourage moving cryptocurrencies closer to traditional financial markets. The G20 intends to help crypto create an open and resilient financial system and emphasized that it is “crucial to support sustainable growth.”