The eyes of financial traders have been hanging around for more clarification from the G20 summit on cryptos as assets and the legal framework. What was discussed in the big event about the future of cryptocurrency? Get the latest highlights of the G20 Summit Cryptocurrency Regulation Debate and see the stance of each country.
7 April, AtoZForex – Investors, bankers, and those who come from the same kitchen, and others who are involved in the industry as professionals, or simply as amateurs even, are yet quite thirsty for knowing which base they are standing on today.
The G20 summit, that recently ended in Buenos Aires, which was looked at as a hope in reaching an agreement among the big world financial leaders, to start the process of regulating the new anticipated currency, has not given much of light, unfortunately.
However, the debate was about the legal framework itself with regard to the blockchain and cryptocurrency in general, and the way of integrating them into the market today efficiently, with keeping undeclared mass agreement on using the new currency in general.
What has the discussion table of the summit come up with?
Digital Assets Between Promises And Lack Of Trust
We are giving highlights here on the stances of the most prominent G 20 members in that regard, starting from the host land, Argentina, where the governor of the Central Bank of the country, asked the member states to provide a deadline during this summer for submitting their recommendations on “what to do”.
The thing that was accompanied by a relatively-read openness toward the new digital currency by The Financial Stability Board- a global financial observatory body that runs the regulations of the G20 summit. With correspondence to that whisper, the International Monetary Fund invited for more cooperation in the new market space.
While IMF managing director Christian Lagarde, showed a negative overview of cryptocurrency, seeing it as a “vehicle of money laundering and terrorism financing”.
Japan, in spite of its massive recent loss in the new currency as reported lately, still seemed to be the most noticeably-pushing venue for cryptos in concept.
The capital Tokyo occupies today the throne of the digital currency space in the world, being the biggest Bitcoin market and a legal tender of it as of April, with half the volume of it being traded there every day. Exchange of virtual money though is only viable in the country if it is registered with the Japanese Financial Services Agency.
The United States, which processes the second large volume of Bitcoin, in spite of this fact, looked reluctant in agreeing on a unified framework for regulating cryptocurrency in all the states together, as yet, each one has its own guideline in that field, tending to apply more security laws on cryptocurrency and digital assets.
It is worth mentioning in this context, that Arizona state, as reported, is considering accepting tax payments in Bitcoin, the thing that was looked at as “has profound symbolic and practical significance.”, experts comment.
On the other hand, CFTC– the U.S.’s main commodities regulator, has recently given the green light to its employees to trade cryptocurrencies, Bloomberg reports.
In parallel, The United Kingdom expressed its concerns that the currency being discussed may join other virtual ones in trying to “dislodge the British pound, but only sterling is legal tender in the UK” as Mark Carney – Governor of the Bank of England, stated.
“The time has come to hold the crypto-asset ecosystem to the same standards as the rest of the financial system,” Carney added in a speech.
However, exchanging cryptocurrencies in the UK is legal, should that fall under the Financial Conduct Authority lists.
In a similar context, the regulators in South Korea– Asia’s fourth-largest economy, sounded opaque on the dialogue table in Buenos Aires about their views regarding the new financial change.
A cautious hesitance that does not line up with the fact that Seoul has become today a prominent hub for trading cryptocurrency.
An optimistic look toward the above-mentioned currency comes from Switzerland, where Bitcoin is legalized, and policy on exchange is legitimate, should that be registered with the Swiss Financial Market Supervisory Authority.
Switzerland has been known for its crypto-friendly regulators, to an extent that the town of Zug– south of Zurich, is today referred to as “Crypto Valley“, for being a home to famous blockchain companies and cryptocurrency platforms.
The European Union member states, in turn, exposed with a strict accent their concerns with regard to money laundering related-intentions of using virtual money in general. Still, they have declared their readiness for regulating the cryptocurrency labels, with emphasis that no EU state can issue its own virtual financial means, while an Estonian attempt to issue its own backed digital currency was turned down in a previous time.
Some margin is still given though to each state in regulating the dealing with virtual funds. It was reported earlier also, that the European Commission Vice President Valdis Dombrovskis pointed out to cryptocurrency as a red flag in connection with anti-money laundering.
Unlike the above-mentioned attitudes, China expressed its entire tendency for banning the trading of digital assets in any means, in spite of the public demand there, which pushed traders to find other channels, like mining.
However, leaks do report that the country may issue its own cryptocurrency. Analysts read this move as another uninterpretable step by China after banning Facebook there before.
Cryptocurrency in the Arab world:
In an unprecedented move in the Arab world toward “adopting” the new digital assets, the national bank of the G20-member-state Saudi Arabia, and its UAE counterpart have recently announced their plan to issue their joint-cryptocurrency in favour of cross-border transactions between the two countries.
In line with that, The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM), are working on regulatory lists for cryptocurrencies, Initial Coins Offerings (ICOs) and cryptocurrency exchanges.
A step analysts read as “encouraging” as it starts from an economically firm ground, like such big names in the oil industry market like Saudi Arabia and the UAE.
Observers see as well, that the daily follow-up of international prices of virtual currencies for hard ones being published in Arabic there, embodies special attention given from the region. The thing that could be reflecting popular demand and willingness from the financial hub in the Gulf area, to invest in the new digital assets.
In a matter of fact, the cryptocurrency and digital assets world may bring to our near tomorrow better values and safer standards, and may as well have its risky way, regarding global financial regulations that have been worked with for decades, but this does never mean the new waited-for currency cannot meet those broad lines.
The question needs carrying out serious efforts, while the present inaction and reluctance shown indicate more delay in making a clear decision for the new updates being talked about.
If we are to make a move, either way, financial decision makers should expedite setting the labels for using the currency, or clarifying what exactly their fears are about it, instead of just giving open statements and warnings with no obvious facts in either direction.
About the Author
This article was provided by Redwan Eid, a journalist, and translator. Redwan worked for the print, electronic, and broadcast media.