G20 cryptocurrencies: here are the details of the legislation

For the year 2019 the G20 has proposed interesting regulatory interventions on the regulation of cryptocurrency and blockchain: here's all the details.

G20 Summit: what regulatory changes on cryptocurrencies?

The G20 Summit was held in Buenos Aires, Argentina, from 30 November to 1 December 2018 to discuss the regulation of cryptocurrencies and blockchain.

Officials and policy makers from the international government and some of the world's largest institutions, including Bank of America, Inter-American Development Bank, World Trade Organization and World Health Organization, met to discuss various topics ranging from infrastructure development sustainable food sourcing to the digital coin market.

Eager to fight both the money laundering that the financial market fraud, the leaders explained that they are trying to introduce "rigid" regulatory news both for the cryptocurrency market and for blockchain activities.

""Stringent" regulations on cryptocurrencies will be introduced to combat money laundering. In addition, our goal is to combat terrorist financing in line with the rules of the International Financial Action Group (FATF) and we will consider other proposals if necessary", Reads a report from the G20 Summit on cryptocurrencies.

Cryptocurrency regulations are likely to be a step forward for Securities and Exchange Commission (SEC) and for other financial institutions around the world.

Regardless of whether a company complies with SEC rules, current regulations are already straining the security industry cryptocurrency.

On the one hand, both current and future regulations could pose a brake on innovation.

Cryptographic space is likely to go through a transition period and those who fail to comply will be ejected from the market.  

G20 Cryptocurrencies: what will happen in the short term?

The technological innovation underlying the functioning of cryptocurrencies has the potential to improve the efficiency and inclusiveness of the financial system.

Digital currencies, however, raise important issues related to consumer and investor protection, tax evasion, money laundering and terrorist financing.

This could have negative implications on financial stability.

Standardization bodies around the world have raised the alarm on cryptocurrencies: they harm consumers and undermine confidence in the global financial system.

A short-term strategy could be to focus on applying anti-money laundering and terrorist financing rules, preventing banks from holding cryptocurrencies.

Last week the Securities and Exchange Commission of the United States said that many online trading platforms should be registered and subject to additional "stringent" rules.

Japan was the first country to adopt a national system to monitor cryptocurrency trading. Checked several exchanges after stealing $ 530 million from Coincheck Inc.

France and Germany are willing to make joint proposals to regulate the French market Bitcoin cryptocurrency.

Virtual currencies have existed for years but speculation has recently "swelled": it is no coincidence that we are talking about one Speculative bubble which is about to "explode".

Many scams on the web that promise high returns to investors and hackers are constantly active in the digital asset sector.

Bitcoin, the best-known virtual currency, lost more than half of its value in early 2019, after having recorded an increase of over 1.300% last year.