G-20 Argentina

G-20 Summit Reaches Soft Agreement on Cryptocurrency Regulations

Today, cryptocurrencies are operating positively after the G-20 summit did not impose strict sanctions to cryptocurrencies. According to a leaked document released by NGO Bitcoin Argentina, the regulations that will apply to cryptocurrencies will be FATF standards. At the same time, the G-20 summit considers cryptocurrencies as crypto-assets.

Cryptocurrency Regulations G-20

Since the last year the cryptocurrency community was waiting for a clarification about possible regulations to the crypto-market. Some experts in the matter predicted hard regulations, while others preferred to be more cautious.

Argentinian Central Bank President and Ministry of Economy
Argentinian Central Bank President and Ministry of Economy

Some days before the Financial G-20 meeting, Mark Carney, Governor of the Bank of England, said that cryptocurrencies do not pose risks for global financial stability. Since then, the markets started to feel that the G-20 may be not so hard as expected.

The most important financial leaders all over the world discussed different topics about cryptocurrencies. But the most important one was related to how to avoid, control and reduce illegal activities related to cryptocurrencies.

The document presented by Bitcoin Argentina reads as follows:

“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. Crypto-assets do, however, raise issues with respect to consumer and investor protection, market integrity, tax evasion, money laundering and terrorist financing.”

In order to regulate the activities around cryptocurrencies, the G-20 leaders agreed to implement the Financial Action Task Force on Money Laundering (FATF) standards. The FATF or GAFI (in French), was founded in order to combat money laundering and other illegal activities related with terrorism financing.

“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 the mandates, and assess multilateral responses as needed.”

Currently, the G-20 is waiting for the FATF report to be presented in July 2018. The regulations and work on crypto-assets must be clarified and explained in the next months.

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