India hosted the first meeting of G20 finance and central bank delegates under the Indian presidency, in Bangalore, South India. The meeting was attended by MEPs from G20 member countries, including 160 foreign delegates and international organizations. At this meeting, member countries revealed a plan on cryptocurrency regulations. The Group of Twenty Nations has decided to implement a new digital resources policy.
The G20 is a unique intergovernmental forum comprising 19 countries and the European Union.
Together, G20 members account for more than 80% of total world GDP, 75% of international trade and 60% of the world’s population. It is a unique global institution, in which developed and developing countries have an equal say.
The breakup of FTX has created an atmosphere of doubt and fear among cryptocurrency investors and users. The cryptocurrency market was filled with uncertainty which is reflected in the prices of cryptocurrencies. Investors are fearful of making a move on the cryptocurrency after facing massive losses in the recent FTX crash. To avoid this situation in the future, the G20 nations have decided to introduce regulations on cryptocurrencies.
Cryptocurrency regulations around the world
The head of the United States is developing cryptographic regulations in the United States. Recently, the US president ordered lawmakers to draft legislation to regulate digital assets in the country.
Initially, Biden was not interested in cryptocurrency, but later signed a document stating that the cryptocurrency industry was growing and would need regulations to establish the country as a leader in the digital asset sector. The main regulatory authorities in the United States that may be involved in the design and enforcement of regulations are the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC)
US Treasury Secretary Janet Yellen has officially stated that the country needs strict regulations for the cryptocurrency industry. Lawmakers backed Yellen’s statement; many believe that the time has come to design and implement new regulations for cryptocurrencies.
CFTC Commissioner Kristin Johnson advised cryptocurrency users stating, “I strongly encourage members of the public to stay informed about potential scams and abuses in digital asset markets by visiting our investor advisory page.”
Cryptocurrency is considered a legal asset in most EU countries. In September 2020, the EU government decided to launch the Markets in Crypto Assets (MiCA) framework. MiCa will help fight cryptocurrency fundraising schemes in EU nations.
The European Union is preparing a draft to regulate privacy coins in the States. Privacy coins are digital assets designed to protect the privacy of users’ ID and transactions. Popular privacy coins Monero, Zcash and Dash will be banned in EU countries. Mainly to avoid user tracking, EU financial institutions took the decision.
There is no specific law for cryptocurrency in the UK, the country considers crypto assets as property but not legal tender. And cryptocurrency exchanges must register with the UK’s Financial Conduct Authority (FCA).
Some cryptocurrency regulations by former UK Prime Minister Boris Jhonson and former Finance Minister Liz Truss have worsened the economic system in Britain. Some of the fintech companies have opened companies outside of Britain due to its strict regulations. More recently, the UK has added regulations to freeze and recover stolen funds from virtual assets.
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