G20 members require cryptocurrency regulation by July, Brazil’s central bank responds

According to a document released by the G20, world economic leaders gathered at the G20 summit in Buenos Aires, Argentina, hoping to develop cryptocurrency regulatory policies by July 2018. The document supports the view of Frederico Sturzenegger, the governor of the Central Bank of Argentina, that cryptocurrencies need to be investigated.

This G20 document proves that it is impossible to crack down on cryptocurrencies, and its member countries seem to prefer to call cryptocurrencies "crypto-assets", that is, they consider cryptocurrencies to be assets rather than currencies.

Notably, the document recognizes the technological innovations underlying cryptocurrencies, arguing that the technology has the potential to increase the efficiency and inclusiveness of the financial system and improve the overall economic state.

The document identifies problems with cryptocurrencies in terms of consumer and investor protection, tax evasion, market integrity, money laundering and terrorist financing, which has been repeatedly emphasized by global regulators.

The document further states:

Crypto assets lack some key attributes compared to sovereign currencies. In some cases, they may have implications for financial stability. We commit to deploying FATF (Financial Action Task Force) standards for cryptocurrency regulation. FATF will review such standards and implement them globally. We call on international standard-setting bodies (SSBs) to continue to monitor crypto assets and their risks as usual and assess countries’ responses as needed.

However, not all countries agree with this. According to local media reports, Ilan Goldfajn, president of the Central Bank of Brazil, revealed that their country will not regulate cryptocurrencies.

The document concludes that specific cryptocurrency regulatory rules will be introduced before July 2018:

We ask the Financial Stability Board (FSB), in consultation with other standard-setting bodies including the FATF, to publish the findings of its research on crypto-assets in July 2018.

The conclusions reached by the leaders in the document appear to be similar to those expressed earlier by FSB Chairman Mark Carney, who noted in a letter to G20 members that cryptocurrencies do not currently pose a threat to global financial stability.