05 Dec G20 Leaders Show Commitment to Regulate Cryptocurrencies
Although some countries or states have taken the lead to legalize different aspects of crypto assets, many have decided to ignore the matter, leaving it completely up in the air. However, the present day conditions and requirements are increasing pressure on governments and states to develop standards for cryptocurrencies. All the world leaders and politicians attending the G20 Leaders Summit in Buenos Aires, Argentina showed a positive attitude for regulating digital assets. This gives hope to those concerned about the future of cryptocurrencies. Everyone around the crypto society is taking this quite positively, and it also shows that the world is now thinking to accept and regulate cryptocurrencies.
This will surely help discourage rumors and narratives describing ‘’the no future for cryptocurrencies.’’ It’s no wrong saying that the G20 Summit is proved to be a savior for the sinking crypto market. From now on, people will start treating cryptocurrencies as a real thing that has a bright future ahead. All of the world leaders present in the G20 Summit agreed that an open monetary system is necessary to back the world economic growth.
Here’s what the G20 leaders said:
“We’ll continue to monitor and, if necessary, tackle emerging risks and vulnerabilities in the financial system; and, through continued regulatory and supervisory cooperation, address fragmentation. We look forward to continued progress on achieving resilient non-bank financial intermediation,”
“We will also devise strategies to ensure that the potential benefits of technology in the financial industry can be realized while risks are mitigated. We will legalize digital assets for anti-money laundering and countering the financing of terrorism in line with FATF (Financial Action Task Force) standards and we will consider other responses as needed.”
The G20 Leaders Summit is an international forum for officials and central financiers from the twenty biggest economies in the world. The summit’s members represent 66% of the entire world population, 85% of the world economic output and 75% of the global trade. Back in February, German and French high ranking executives issued an official letter calling for a debate on the regulatory suggestions of crypto coins and tokens from the finance minsters belonging to the G20 states. In July, central bankers and finance ministers from G20 also specified their position that digital assets don’t pose a threat to finance stability.
The main reason behind calling for taxation of digital assets is to combat illegal and nefarious activities such as money laundering and tax evasion. The G20 countries are expected to announce something surprising for cryptocurrencies next year when Japan will be hosting the summit. So, a final version of crypto regulations, after assessing suggestions from each G20 member, is expected to be in effect by 2020.
Should crypto enthusiasts welcome the taxation of cryptocurrencies? Please feel free to let us know your feedback in the comment section below.