G20 Recommends Cryptocurrency Regulation Proposals Drawn Up by July

cryptocurrency regulation proposals

Economic and financial leaders at the G20 summit have called for proposals for cryptocurrency regulation to be drawn up by July, in a bid to harmonize a global approach to regulating cryptocurrency markets.

Following the meeting of finance ministers on Tuesday, the chairman of the Argentine Central Bank, Federico Sturzenegger, addressed the assembled media in Buenos Aires, informing them of an agreement among delegates of the need for further measures to tackle abuses of cryptocurrency.

However, he suggested that more details were needed before firm proposals could be drafted, and said the G20 ministers had agreed on a July deadline for gathering more insight.

“In July we have to offer very concrete, very specific recommendations on not what do we regulate but what is the data we need.”

While the G20 is aiming at developing global standards for regulation of the cryptocurrency markets, there was far from a united front among all countries globally.

Brazil, for example, has already indicated it will not regulate cryptocurrencies, with Central Bank president Ilan Goldfajn saying Brazil will not necessarily toe the G20 line.

Regardless, the G20 will push for any agreed proposals to be adapted to the Financial Action Task Force, and applied specifically to cryptocurrencies to ensure a global framework of regulation.

In particular, the proposals will seek to identify mechanisms for anti-money launder protection, and for preventing terrorist financing through cryptocurrencies and blockchain technology.

The discussions have been largely instigated by French, German, American and Japanese concerns, among the most vocal of the G20 in calling for a more unified international approach.

A statement released by the G20 following the meeting confirmed their agreed position, concerning the Financial Action Task Force standards, and the need for international monitoring and standards in cryptocurrencies.

“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.”