The G20 will decide how to regulate crypto-currencies until July 2018

The G20 will decide how to regulate crypto-currencies until July 2018

Speaking on Tuesday after a meeting of Finance Ministers “big twenty” in Buenos Aires, the Chairman of the Central Bank of Argentina Federico Sturzenegger said that the present member countries agreed that the cryptocurrency should be regulated somehow, but in order to make some specific suggestions require more information.

During the press conference, he noted that member countries agreed to July? as the deadline for that? to determine the recommendations:

In July we have to offer very specific, very accurate advice, and not to ask questions “and what are we going to adjust?” or “what data do we need in order to understand the situation?”

However, it should be noted that not all countries agreed with this approach. On Monday, the President of the Central Bank of Brazil Ilan Goldfine said that cryptocurrencies will not be managed in his country. Brazil has not yet decided whether it will follow the G20 recommendations for cryptocurrency and other issues.

Countries big twenty have also agreed to apply the standards of the FATF (an intergovernmental body formed to combat money laundering and the financing of terrorism) when dealing with cryptocurrencies.

In a statement issued Tuesday afternoon, the G20 said:

We undertake to implement the FATF standards for crypto assets and look forward to working with FATF on this issue. We call upon the international standardization bodies (SSB) to continue the monitoring of crypto assets and risks that they carry.

Recall that the Central Bank heads and Finance Ministers of France and Germany in a joint letter stated that crypto-currencies “can present significant risks for investors”, and the Secretary of the Treasury USA Steven Mnuchin and a government official from Japan expressed concern about their use in illegal activities.

Apparently, most regulators agree that cryptocurrencies have an impact on the global financial system. The Bank of England Governor mark Carney (Mark Carney), who also chairs the financial stability Board of the G20, wrote in his letter Sunday that “crypto assets does not pose a threat to global financial stability in real time”, referring to the relative size of the total market capitalization.

According to him, cryptocurrencies are less than 1 percent of global gross domestic product (GDP), while swaps on credit defaults is equal to global GDP in 2008.

Some of the officials who attended the summit, called for the establishment of a global set of rules that could use each country, but it is unclear how far the discussion of these rules.

While in the public document published prior to the meeting, noted that “the technology of crypto-assets has the potential to promote financial integration,” but it also notes that it is necessary to consider the impact they can have on financial stability and their potential use in tax evasion and illegal activities.

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