G20 Conducts Special Task Force To Regulate Cryptocurrencies

G20 Conducts Special Task Force To Regulate Cryptocurrencies

The international forum for the governmental financial ministers and central bank governors of the 19 country members plus the European Union, formall

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The international forum for the governmental financial ministers and central bank governors of the 19 country members plus the European Union, formally known as G-20, G20 or Group of Twenty, concluded their recent summit that took place in Buenos Aires, Argentina, focusing on commitment to “strengthen the contribution of trade to our economies.”

The purpose of this organization is to systemically bring together important industrialized and developing economies to discuss key issues regarding the global economy.

At this time, the main topic for discussion was no other than digital assets, specifically cryptocurrencies and other blockchain-powered monetary systems.

The group created the Financial Action Task Force (FATF), to investigate, understand and posit concepts for regulating the determined digital assets, which from now and on will be treated neither as currencies nor as securities (as other financial institutions have suggested).

Member of the G20’s Task Force, Julie Maupin who explores the international law dimensions of the use of distributed ledger technology (DLT), or commonly known as blockchain technology, in international financial transactions, is also a member of the well-known DLT-based Tangle Network’s parent – IOTA Foundation since 2017.

That should allow G20 to understand first hand what exactly is going on inside this new, extremely volatile financial sector and propose regulative meters by the end of the summer.

“We acknowledge that technological innovation, including that underlying crypto-assets, has the potential to improve the efficiency and inclusiveness of the financial system and the economy more broadly. Cryptoassets do, however, raise issues with respect to consumer and investor protection, market integrity, tax evasion, money laundering and terrorist financing. Crypto-assets lack the key attributes of sovereign currencies. At some point, they could have financial stability implications. We commit to implement the FATF standards as they apply to crypto-assets, look forward to the FATF review of those standards, and call on the FATF to advance global implementation. We call on international standard-setting bodies (SSBs) to continue their monitoring of crypto-assets and their risks, according to their mandates and assess multilateral responses as needed.”

Earlier this year, the European Commission had also conducted the European Blockchain Observatory and Forum, supported by the European Parliament and represented by Jakob von Weizsäcker responsible for the recent report on virtual currencies.

The Blockchain Observatory and Forum will monitor and highlight key developments of the distributed ledger technology, as well as “promote European actors and reinforce European engagement with multiple stakeholders involved in blockchain activities. “

It seems that we’re closer than ever to the point where new alternative monetary systems will not only disrupt traditional banking, but they are now being observed and in a way supported by governmental institutions in order to be integrated with ease into our everyday lives.