Last week, the world’s largest economies, the G20 group, met in Buenos Aires, Argentina. One of the main topics of discussion was cryptocurrency trading exchange. The meeting can influence the cryptocurrency market in future. The message passed was not to ban but regulate the cryptocurrency trading exchange market.
Some key takeaways from this summit include:
1. Cryptocurrency should be accepted by the countries
The participants agreed to recognize the power of crypto to people on the borders of the economic system. They also decided to help governments broaden welfare policies.
2. Nations recognize the end of the traditional economy
The ministers also agreed that it isn’t possible to separate the economy from the digital age. They acknowledged that the traditional economy is changing as well.
3. Regulation is inevitable
The economy is digital, but this doesn’t invalidate the need for regulation. Rules must be imposed since users are real and part of a regulated country.
4. Regulate, not prohibit
The members unanimously agreed to regulate and not ban cryptocurrency. They agreed that digital currency represents a revolution in social organization and the economy. Therefore, they cannot be banned but must be regulated.
5. Regulation won’t prevent technology innovation, but taxation is will
They agreed to regulate the industry without choking the system. The rules must not hinder innovation. However, fees will be imposed during this process.
6. First regulatory tenders will be ready in July
Presidents of the central banks, the Organization for Economic Cooperation and Development and Financial Action Task Force will be responsible for the regulatory proposals.
7. Preventing crimes
Regulatory proposals will focus on the prevention of illicit activity such as avoidance of currency, financing terrorism, money laundering as well as consumer protection.
8. Tracking and KYC
KYC, as well as Digital Identity standards, come in handy when discussing how crypto activities can be tracked to identify where they are coming from or going.