Global economic leaders are meeting today in Washington DC for the Second G20 Meeting of Finance Ministers and Central Bank Governors, with cryptocurrency regulation firmly on the agenda.
As a follow-up to the Buenos Aires G20 meeting in March, where the need for a global plan for cryptocurrency regulation was initially discussed, more talks on the matter are set to take place in Washington.
The previous meeting of the world’s 20 largest economies reached some agreement, in terms of state leaders recognizing the importance of cryptocurrencies and their role in revolutionizing many banking procedures. The G20 has previously stressed the necessity to prevent the crypto industry from being misused by malicious agents, fraudulent schemes and other criminal activity. However, members also stressed the need to not hinder the development of the technology through regulation.
The IMF and the World Bank Group will also be participating in the meeting that will be attended by 55 delegations, whose heads include 22 finance ministers, 18 central bank governors, and 9 international organization leaders.
The G20 had previously stated that this July was the date set for a package of recommendations to be put forward regarding cryptocurrency regulation, and June when the first practical proposal for crypto regulation must also be presented. In March, Italian central bank governor Ignazio Visco commented that he expected the recommendations would be overseen by the International Organisation of Securities Commissions (IOSCO).
Speaking after the Argentina conference, a senior Japanese official said, “Many G20 members didn’t take crypto-assets too positively”. The official acknowledged that “some form of regulation was necessary” and suggested finding agreement between nations with varied interests and circumstances could be difficult.
Brazil’s central bank president Ilan Goldfajn said that cryptocurrencies would not be regulated in his country and Brazil may not agree to any regulations that are outlined by the G20 on crypto assets.
France agrees on the need for regulation and has already banned deposits and loans made in cryptocurrencies. It is likely that not all nations will take such extreme measures in regulating the use and trading of digital currencies.
The Financial Action Task Force (FATF) has been given the task of addressing regulatory issues as the talks progress over the course of 2018.