G20 Nations Call for Unified Cryptocurrency Regulation and Taxation

The G20 group, an international forum consisting of governments and central bank governors of the world’s 20 largest economies, had at their recent summit discussed extensively cryptocurrency regulations and other factors around the sector.

The event which took place in Buenos Aires, Argentina, had in attendance representatives of all member nations and world corporations; with its only African member (South Africa) also present.

Among topics discussed from infrastructure development to food sourcing and many more; the G20 deliberated on the need for creation of an open financial system backed by international laws. To this subject, cryptocurrencies and the emerging digital asset class were been discussed with world leaders calling for unified regulations and a global approach to digital currencies.

According to a final communiqué published to brief the public on its deliberations, it reads: “We will regulate crypto assets for anti-money laundering and countering the financing of terrorism in line with Financial Action Task Force standards and we will consider other responses as needed.”

The above assertion was made in line with envisioning ways to ensure healthy regulation of cryptocurrency and blockchain businesses to prevent money laundering and terrorism tendencies.

New Asset Class

After due deliberations and draft of punishable offences as regards the financial system, the G20 expressed commitment to using all political tools including digitalization of the global economy and crypto assets, to promote global growth.

Members at the summit acknowledge that the global financial infrastructure is tending towards more digitalization just as portrayed in cryptocurrencies; a realization which had the group opt for voluntary policy recommendations for countries looking to facilitate digital financial services.

The organization also shed light on the adoption of an international tax system especially for cross-border payments; though it is not clear if this system will solely apply to cryptocurrencies.

In all the G20 will consider on a wider scale all issues raised at this year’s summit in a coming event in Japan, 2019 with a view to implement final policies by the year 2020.

Mixed Reactions

Even as many opine that government and institutional legislation may go against the core cryptocurrency basics of freedom, privacy and non third party participation, the growing interest by government and financial authorities is a pointer that crypto is nearing possible adoption.

With topics like taxation on the horizon, these institutions prove that digital currency is gradually being viewed as an asset class.

Optimists expect that these regulations would not restrict the growth of the emerging industry in its early stages, by limiting the way companies and industry participants can grow in the long run.

Extensively, a clear regulatory stance by the G20 would provide a template for member nations like Russia and India to draft their individual policies given the lack of clear regulatory status in both countries. Also, a unified G20 regulation could come in handy and encourage big financial institutions like Goldman Sachs to speed up moves for the operation of services within the sector.

As is a common saying in the crypto sphere “First they ignore crypto, then they laugh, then they fight crypto, then crypto wins.”

 

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