There are many countries that have decided to regulate different aspects of the virtual coins. On the other hand, others have the matter in the air. However, this might be a thing of the past as pressure is mounting on governments have it regulated. Leaders in the latest G20 summit vowed to ensure the crypto assets are regulated.
The Cryptocurrency’s Mitigating Risks
The latest G20 Summit came to a close on Saturday, 1st December in Argentina’s capital, Buenos Aires. The heads of states that attended the summit made a joint declaration on sustainable and fair development of the technology. This statement by the G20 Summit heads of state, affirmed one thing. It proved that an open financial system can help in supporting economic growth. At the same time, they also called for the international agencies to regulate fast-rising technologies like cryptocurrency.
Plan To Tackle Rising Risks In The Broader Fintech Industry
While hosted by the president of Argentina Mauricio Macri, the G20 summit leaders agreed to tackle certain issues in the market. This will go on even as they monitor and fix the vulnerabilities in the broader financial market. They also agreed, with one voice, to address the issue of fragmentation. This will be made possible through endless supervisory and regulatory supervision. The summit also affirmed their commitment to achieving what other industry leaders had promised to deliver on. This is a continued commitment to attaining a flexible non-bank financial intermediation.
They promised to upgrade their efforts in ensuring that the good side of this new technology is felt in the market. This will be done as risks are mitigated in a proper professional way. They also agreed to regulate the virtual coins for anti-money laundering. This will also assist in tackling terrorism financing in line with the standards of the Financial Action Task Force – FATF. These world top leaders also vowed to put into consideration other responses that might be of great importance.
The Road To 2019’s G20 Summit
The G20 is a global summit that incorporates heads of states and central bankers. They are drawn from the world’s leading economies. But there are certain important facts that few people know about the G20 members. The members of the summit represent 85% of the world economic output. It also represents 75% of the global trade as well as 66% of the total world’s population.
In February 2019, a letter was issued by top-ranking German and French officials. These leaders were asking for a discussion on the effects of regulating the virtual coins. The letter was circulated to all the Finance ministers of the G20 member states. Japan had also been earlier reported to be rooting for agreement on crypto regulation international rules. This happened in March 2019. Japan is one of the countries where the adoption of the virtual coins has been so widespread. Fast forward to July 2019, the Finance ministers and central bankers from the G20 member states aired out their view. They stated that the digital assets do not pose any risk to financial stability and should just be adopted.