Last week in Buenos Aires, Argentina, hosted the summit of “Big twenty”, the group of 20 largest economies in the world. Regulation of bitcoin has become one of the main topics discussed between representatives of States.
The importance of all that was said in Argentina, can not be understated. The decisions taken by the g-20 will affect the cryptocurrency market all over the world.
Main message: we will not deny, and we will regulate the market. This is very positive news, considering how many doubts and fears caused the positions of China, USA and Japan.
CCN, in partnership with Criptomoedas Fácil, summarized the main points that were discussed during the meetings. In July must be submitted the first concrete proposal for regulation, so it is important to monitor the development of the theme, which will bring institutional legitimacy to the cryptocurrency.
1. States should adopt the cryptocurrencies and the Blockchain
The G20 members acknowledged that given the current economic situation, citizens have the right to use cryptocurrencies. In addition, regulators are aware that the adoption of digital money will help the governments to improve the welfare of the population.
2. States recognize the death of the traditional economy
The Ministers also agreed that the traditional economy is in transition process and it is impossible to separate the digital technology.
3. Regulation is inevitable
Regulation is an inevitable process. To cryptocurrency rules should be applied as to any other business.
4. Regulate, but not ban
G20 members unanimously agreed that cryptocurrencies are important and represent a revolution in economic and social organization, so they cannot deny, but to go through the regulatory process they need.
5. Regulation will not prevent the development of the technology, but the taxation of cryptocurrencies is highly likely
It is also clear that the regulatory process will be carried out very carefully, without imposing rigid rules that hinder the development of the technology. However, transactions with cryptocurrencies as with any other forms of money, will be taxed.
6. In July will be presented the first proposals for the regulation of
Central Bank governors, the Group of development of financial measures for combating money laundering and the Organization for economic cooperation and development (OECD) are designed to meet the regulatory proposals of the G20. The first practical observations on the regulation will be presented in July of this year at the III meeting of Ministers of Finance and governors of Central banks.
7. The fight against economic crimes
Regulatory proposals will mainly focus on preventing any illegal activities such as terrorism financing and money laundering. Also, regulators will take measures to protect users from fraud in the ICO and other cryptocurrency projects.
8. Transaction monitoring and KYC
There is still no consensus on how to track the cryptocurrency assets, whether to put them on tags, so that if necessary it was possible to determine where they came from and where they are transferred. It is also important to pay special attention to the KYC standards and Digital identity.
9. Europe is developing its own regulations
Europe intends to lead the process of regulation of crypto-currencies, therefore, will not wait for the scoring of the positions of the G20 in July. European countries have established a working group to discuss this issue and implement practical standards in Europe without waiting for the proposals of the group of twenty.
Although this issue was not considered at official meetings, the process of self-regulation, which is gaining strength in Japan, Puerto Rico and the United States, sparked heated debate on the sidelines and ultimately became the most discussed topic.