The G20 countries have signed a joint agreement in which they promise to work together on the regulation of cryptocurrencies, the combat of money laundering and financing of terrorism. These promises are in line with the Financial Action Task Force (FATF), which was establish to fight financing of terrorism in general.
The FATF has been discussing ways to introduce rules that would govern cryptocurrency exchanges globally. Yet, there hasn’t been much development on this front yet. Recently the SEC in the United States fined the decentralized exchange EtherDelta, while South Korea saw a start-up exchange walk away with millions of dollars worth of cryptocurrencies.
The G20 recognized that the financial sector is becoming more digital. They want to present a consensus-based solution to address the impacts of this digitization on the international tax system. An update will be presented in 2019, followed by a final report one year later.
In July the G20 claimed that the cryptocurrency market ‘does not pose a financial risk’ for the countries. The market as a whole is worth less than major companies like Disney, Google, Microsoft and Apple.
Also published on Medium.