G20 Calls for Cryptocurrency Regulation By July
The answers from G20 begin to appear. The most important and influential global economic leaders have set a deadline for the implementation of a series of laws regarding cryptocurrency usage.
The announcement was made yesterday, 20th March 2018 after an official G20 meeting, which took place in Buenos Aires. Together with the Argentina Central Bank’s Boarding Directors, the countries have come to a common denominator. They all agreed that the use of digital coins must be heavily controlled, and that they should be regulated.
During a press conference, the Director of Argentina Central Bank Frederico Sturzenegger stated this:
“In July we have to offer very concrete, very specific recommendations on, not ‘what do we regulate?’ but ‘what is the data we need?”
Brazil doesn’t plan to regularize the crypto usage
It’s worth noting that not all member countries are getting involved in this project. For example, on 19th March 2018, the President of the Central Bank of Brazil, Ilan Goldfajn has announced that he will not impose laws in Brazil regarding the prohibition or restriction of digital assets, according to El Cronista. Also, the country will not be subject to the new laws issued by the G20.
G20 will apply the Financial Action Task Force (FATF) standards
In order to implement the new regulation, the G20 will take into account the Financial Action Task Force (FATF) standards. This is an “intergovernmental body” that aims to eliminate any possibility of money laundering or other fraudulent actions to digital assets.
In the official Press Release, issued by the Finance Ministers and Central Bank Governors on 20th March 2018, G20 wrote:
“We commit to implement the FATF standards as they apply to crypto-assets, look forward to the FATF review of those standards, and call on the FATF to advance global implementation. We call on international standard-setting bodies (SSBs) to continue their monitoring of crypto-assets and their risks, according to their mandates, and assess multilateral responses as needed.”
The meeting of the G20 members was mainly organized following requests from France, Germany, North America and Japan.