G20 Summit leaders could decide on international cryptocurrency regulatory framework in June
Bitcoin’s strong bullish rally this week garnered the attention of financial institutions and governments alike, with many personalities tweeting about the same. Though adoption and acceptance of crypto-assets have increased manifold over the past year, regulatory clarity is still a distant reality.
Even though many countries are ‘working on’ regulations, nothing concrete and specific has yet been put forth by any official body. This is alarming as many reports have suggested that cryptocurrencies are popular among fraudsters and terrorists owing to their anonymity and privacy characteristics. Therefore, bringing regulatory clarity would not only further cryptocurrency adoption but would also regulate frauds and scams to a large extent.
A welcome move in this regard was the fact that leaders who attended the G20 Summit in Buenos Aires, Argentina, in December 2018 had signed a joint declaration to help foster a regulatory framework for cryptocurrencies while adhering to the Financial Action Task Force [FATF] standards.
According to Japanese media reports, the framework, which has been in the works for over three months, will be tabled at a G20 Finance Ministers and Central Bank governors meeting in June at Fukuoka. The framework would be a ‘new international regulation proposal for virtual currencies,’ and could possibly be the first step towards regulatory clarity at an international level if accepted.