The G20 Summit is over, and we can now recap on the most important issues, cryptocurrency included, addressed by the global leaders and financial experts who are shaping the societies we live in today. This year’s G20 Summit has been held in Fukuoka, Japan. Apart from the G20 leaders, it hosted some of the most prominent financial experts as representatives of central banks, the IMF, the World Bank, the World Trade Organization and the UN. They discussed various subjects, but what interests us the most is cryptocurrency regulation.
But, first, we should look back at some of the topics that no one could have overseen such as the ongoing trade war led by the US government and its Eastern counterpart – China. The impact such wars could have globally was another topic discussed at the Summit. The conclusion was that tensions of this kind pose a threat to global economy, and predictions were made that, if prolonged by 2020, the global GDP could be decreased by 0.5 percent or approximately US$455 billion, which would push the world into another economic crisis.
Interestingly, among the threats of the same importance an aging population has been listed.
Special attention was paid to the need to make a serious reform of international tax policies, as they relate to the giants such as Facebook, Amazon and Google. Namely, the proposed regulation should increase the taxes for large multinational companies. Simultaneously, the same regulation should prevent redirecting the sales to so-called European “tax heavens”. Apparently, some of the mentioned companies pay little tax in Europe, as they direct their sales through Ireland and Luxembourg, known as low-tax countries.
The most important news coming from the Summit was addressed by Ms. Christine Lagard, the head of IMF, who stressed the importance of cryptocurrency assets and the need to have a standardized approach when it comes to regulations:
” It is critical to continue the international dialogue on fintech. Integrating different national approaches to crypto-assets, non-bank fintech intermediaries, and the governance of data is crucial.”
Naturally, there are already bodies working on developing what should be considered – standards. As for the members of G20, they recognize the so-called FATF (Financial Action Task Force) as the entity in charge of setting the standards for international handling of crypto assets, as well as for fighting money laundering, respectively. There have also been some suggestions to form the registry of crypto exchanges on the G20 level.
The experts claim that in case decisions of the G20 Summit are actually put into force, cryptocurrencies and its pertaining markets would be on a good way of becoming one of the mainstream ways of handling and transferring funds.
The final opinion expressed at the end of the Summit as the official statement is as follows:
“…cryptocurrencies can deliver significant benefits to the financial system and the broader economy, as crypto-assets do not pose a threat to global financial stability at this point.”
Do you think that cryptocurrencies can and should be controlled globally?