G20 to Regulate “Crypto-Assets”
World leaders concluded the G20 Summit in Buenos Aires with a pledge to regulate “crypto-assets”. Representatives of the G20 member countries published the declaration entitled “Building consensus for fair and sustainable development” on the development of a unified legal system of a digital market regulation. In this document member nations of the G20 committed to building “an open and resilient financial system,” which mentions that it “is crucial to support sustainable growth.”
It is not the first attempt to create a unified regulatory framework within the international body. The European Union launched the General Data Protection Plan or GDPR in May, which codified the rights of citizens in the EU by the implementation of data protection and ‘know your customer’ protocols. The G20 document is less robust than the GDPR. However, the agreement highlighted some of the common concerns over cryptocurrencies, namely; money laundering and the financing of terrorism. The document also states that member nations will begin exploring the potential benefits of applying technology to the financial sector. The participants agreed on specific proposals on legislative support for the turnover of digital assets, taxation of business, and crypto assets, as well as on the inclusion of certain measures to counter money laundering in the system. These points will be discussed during the next G20 meeting although the final documents are planned to be adopted in 2020.
Could this be the next step in creating a global framework for cryptocurrencies?