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G20 Rejects Crypto Regulation.......Saying it “lack the traits of sovereign currencies,”

TheMerkle G20 no Regulation

There is no need to regulate Cryptocurrencies Now!

A draft document obtained from the G20 meeting  suggest the group has officially rejected the call to regulate the cryptocurrency market for the time being. That decision may not surprise many financial analysts, considering the comment of FSB chairman just before the meeting and the fact that both France and Germany were adamant on putting Bitcoin regulation on the G20’s agenda.

The statement reads in part that cryptocurrencies “lack the traits of sovereign currencies,” implying that the G20 considers crypto to be an asset rather than a currency.

During a meeting Sunday afternoon, the G20 issued an official statement indicating that the global watchdog will review existing rules rather than design new ones. This means we will not see any new regulations for Bitcoin, altcoins, or others anytime soon. It also confirms that the existing rules and guidelines do not apply to cryptocurrency, which makes it imperative to have a clear definition of cryptocurrency.  That issue is due for deliberation during the meeting, which ended yesterday. 

Klaas Knot, the chair of the Financial Stability Board (FSB), an international regulatory body formed by the G20 in 2009, and the president of De Nederlandsche Bank NV, told Bloomberg that “Whether you call it crypto assets, crypto tokens -- definitely not cryptocurrencies -- let that be clear a message as far as I’m concerned:”

“I don’t think any of these cryptos satisfy the three roles money plays in an economy.”

When this news broke, the cryptocurrency markets seemingly breathed a sigh of relief. More specifically, the Bitcoin price shot up by about US$1,000 in a matter of hours after a letter to G20 circulated from the Bank of England’s governor, also the head of the FSB, that said cryptocurrencies were not a “risk” to the world’s economy.


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