Upcoming 2019 G20 Summit Could Open Up a Can of Bitcoin Worms Regarding Crypto Regulations

It has been recently revealed that the G20 countries will be coming together to discuss regulations regarding the presence of cryptocurrencies. As per news outlet, News.Bitcoin.com, the discussion stems from the fact that cryptocurrencies need further following and are required to meet the standards of the AML (anti-money laundering) and CTF (counter-terrorism financing) policies (https://news.bitcoin.com/g20-regulate-crypto-assets-policies/?utm_source=OneSignal%20Push&utm_medium=notification&utm_campaign=Push%20Notifications).

Many parties have supposedly contributed to the sharing of knowledge to ensure that the G20 has a sound background in coming up with appropriate and fair crypto policies.

The G20 seems to be in support of the efforts taken by the Financial Action Task Force (FATF), especially when it comes to the AML and CTF. They also requested the FATF to “clarify” how said standards would apply to cryptocurrencies, reports News.Bitcoin.com.

Here’s What The FATF Had To Say In Regard To Digital Assets:

“Jurisdictions should apply a risk-based approach to virtual assets […] At minimum, virtual asset service providers should be required to be licensed or registered in the jurisdiction where they are created or where they have their place of business.”

Furthermore, the FATF strongly suggests that the G20 implement a policy that requires some sort of supervising and monitoring of said firms by someone or an entity different from the actual firm. Another party that’s providing their input to the G20 is the Financial Stability Board, who has since informed said countries involved of all the crypto regulators in each country.

The G20 Summit has been scheduled for June 28-29, 2019. While the wait will have to continue until then, News.Bitcoin.com has also briefly explored each G20 country’s current stance on cryptocurrencies and it goes as follows:

G20 Countries’ Current Stance on Crypto and Existing Regulations

South America: Argentina and Brazil

Argentina’s central bank is supposedly in charge of assessing “financial stability risks” related to cryptocurrencies. The SEC superintends said assets amidst the capital markets and the Financial Information Unit focuses primarily on crypto-related AML/CTF concerns. This seems to be the case with Brazil as well, where the country’s central bank not only assesses “exposure to those assets [cryptos],” but also has a say in what type of crypto-related operations can exist.

North America: US, Canada, and Mexico

The US is one of the main countries that has since involved themselves in cryptocurrencies and understanding how rules should be imposed. SEC is in charge of regulating cryptos that are found to serve as securities, while the Commodity Futures Trading Commission (CFTC) focuses primarily on derivatives and commodities. As for banks and financial institutions that come across cryptos, it’s the Federal Deposit Insurance Commission (FDIC) that is in charge of making sense of said exposure. Finally, we have the Office of the Comptroller of the Currency who explores risks and decides at what extent banks can get involved.

Interestingly, Canada has deemed another country with an increased number of regulators overseeing the crypto market. In particular, there’s the Bank of Canada who looks at the potential risks from participation in crypto related activities and assets.

Then there’s the Office of the Superintendent Financial Institutions, another entity that assesses risk and sets a bar to how much risk can be “accepted”. Finally, the Financial Consumer Agency of Canada contributes by ensuring optimal investor protection. Given the 10 different provinces in Canada, there are many other higher officials involved as well.

As for Mexico, the central bank provides the necessary guidelines as to the types of crypto assets that financial institutions can associate themselves with.

Europe: Spain And France

While Spain is not among the members of G20, they have been invited to attend the summit given their interest in crypto regulations. France, on the other hand, has established a “regulatory framework”, which has been included in their Pacte bill since April 11.

Asia: China, India, South Korea, Japan, and Indonesia

As per the claims made, China, India, South Korea, and Japan will be regulating cryptocurrencies. Indonesia has supposedly banned its likes but is nonetheless keeping an eye out for long term effects on the country’s financial sector. Again, in this case, protecting investors appears to be the main goal, which is fair considering the number of problems that are known worldwide. The Indonesian Financial Services Authority (FSA) are the ones to keep watch of the aforementioned effects.

Western and Central Asia: Saudi Arabia, Turkey, And Russia

When it comes to Saudi Arabia, two players involved in the crypto sphere include the Capital Market Authority and the Saudi Arabian Monetary Authority (SAMA), both of whom plan to conduct studies on how crypto assets can be introduced, and if successful, how they should be integrated into society.

Like previous countries, Turkey’s central bank is the main player when it comes to the country’s financial aspects. But when it comes to crypto specifics, it’s the Financial Crimes Investigation Board who gets the final say on related regulations. Finally, Russia is still in its working stages in implementing some form of crypto framework.

Africa and Oceania: Africa And Australia

Africa’s central bank is responsible for coming up with regulations. There supposedly exists none at the very moment and hence no limitations in digital assets investment. This being said, the Prudential Authority does follow up on firms involved in crypto and the Financial Sector Conduct Authority explores crypto markets.

Lastly, in Australia, it’s the Transaction Reports Analysis Centre that regulates crypto exchanges, while the Securities and Investments Commission that assesses related activities. The central bank addresses the overall picture by seeing how crypto assets positively or negatively impact monetary policies and to what extent the risks can impact financial stability.

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