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Bitcoin Regulations Explored By G20 Leaders

Bitcoin Regulations Explored By G20 Leaders
Breaking News / Bitcoin

The G20 summit in Buenos Aires over the weekend, the leaders of G20 have signed a joint declaration pledging to develop a regulatory framework for digital currencies in accordance with Financial Action Task Force standards, amongst other things too.

The last summit was in July this year and the group of leaders delayed the decision on anti-money laundering measures related to cryptocurrencies until the results of the FATF (Financial Action Task Force on Money Laundering) standards review were received.

During the latest gathering on 30th November - 1st December, the leaders recognised the need to lay out all available the political tools to promote global growth, specifically paying attention to cryptocurrencies and how the global economy became more digitalised.

In the declaration it states that digital assets are intended to support "an open and resilient financial system, grounded in agreed international standards." in turn, this is key for the growth of the economies sustainability.

In order to obtain this, politicians have come together and agreed to develop a crypto regulatory policy compliant with the standards of an inter-governmental body set up in the late 80s in order to promote standards for dealing with money laundering, terrorist financing among other issues that pose a threat to the global financial system known as FATF.

As it says in section 25 of the declaration:

"We will step up efforts to ensure that the potential benefits of technology in the financial sector can be realized while risks are mitigated. 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."

Even though didn’t directly refer to cryptocurrencies, section 26 of the declaration looks at the need for developing an advanced and uniform taxation system to address issues arising from the growing digital nature of the global economy. The signatories state:

"We will continue our work for a globally fair, sustainable, and modern international tax system … We will continue to work together to seek a consensus-based solution to address the impacts of the digitalization of the economy on the international tax system."

The leaders at the summit promised to work on these issues individually and provide an update at the next summit in Japan during 2019.

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