Cryptocurrency has gained great attention from the global regulators, with the G20 nations reaching a consensus on the urgency to regulate it. The meeting between the G20 finance ministers and central bank governors took place at the International Monetary Fund's (IMF) headquarters, and Indian Union Finance Minister Nirmala Sitharaman stated that a globally coordinated policy response is needed to control the sector properly. Global experts on the matter were also present, and it was noted that all members agreed on the importance to develop regulations.

India made suggestions on how to work on a synthesis paper in order to merge both regulatory and macroeconomic perspectives of the crypto assets, while the global regulatory bodies were suggested to find a common framework which could work in all countries. Such organizations include the Financial Stability Board (FSB), the Financial Action Task Force (FATF), the Committee on Payments and Market Infrastructures (CPMI), the International Organization of Securities Commissions (IOSCO) and the Basel Committee on Banking Supervision (BCBS).

The FSB is set to publish a regulation paper in July, while the IMF-FSB synthesis paper is due in September. All of this will allow the countries of the G20 to ensure that cryptocurrency will follow a set of rules such as concerning its use as a financial instrument and its environment as a whole.

As the global regulators work together on finding a universal regulation and standard, it is expected that new measures will be set to avoid any fraud or illegal activities and protect all economies against potential repercussions and risks. Cryptocurrency presents great attractions and potentials though, which why is it is important to apply the regulations without interfering on its decentralized nature. This can be done by protecting the risk against criminal activities, ensuring financial and cyber security, working on a taxation model and respecting the data privacy regulations.

All these measures can help cryptocurrency to become a tool to use in the global financial system, an asset people can use to store value and make seamless transactions. Regulating the crypto industry won’t happen overnight, but the G20’s consensus is an important step in the right direction, and the work of the IMF, FSB and other regulations bodies will be fundamental to do it in the best way.



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