Crypto-assets remain generally unregulated by the relevant government bodies and this poses an obstacle towards global adoption. A meeting that could have shed some light on what’s to come on that subject was the G20 finance ministers and central bank governors meeting that recently took place in crypto-friendly Japan.
The communiqué of the meeting, held in Fukuoka on the 8th and 9th of June, was recently released. Although the trade war occupied most of the headlines discussed in the meeting, the finance ministers and central banks governors allocated some time to discuss crypto-assets.
They agreed that such “technological innovations, including those underlying crypto-assets, can deliver significant benefits to the financial system and the broader economy”. Nonetheless, they are keeping in mind the potential risks and stressed on the importance of investor protection. For those reasons, members reiterated that they will be following the Financial Action Task Force (FATF)’s “standards to virtual assets and related providers for AML and CFT”. More information will be shared by the “FATF Interpretive Note and Guidance” that is scheduled for release by the end of June.
We are yet to find out what these regulations will turn out to be, but it is worth keeping in mind that we recently saw slight aggression from some governments and a few big banks towards cryptocurrencies. HSBC and NationWide have been allegedly banning their customers from buying cryptocurrencies with their own money. Indian lawmakers drafted a bill that would imprison cryptocurrency users. Even crypto-friendly Japan has proposed tougher regulations recently.
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