G20 to call for international crypto-currency monitoring
Financial leaders to argue for the adoption of a multilateral solution that will be able to assess virtual currencies and respond to international risks
Next week’s G20 meeting of finance ministers and central bank governors from the world’s 20 biggest economies will call for stronger monitoring of crypto-currencies while also assessing the need for a multilateral response to any international financial stability threats, reports Reuters.
The financial leaders will highlight how blockchain-based technological innovation has the potential to improve the efficiency and inclusiveness of the financial system but will also focus on the risks and instability that the recent crypto-currency speculative boom has brought.
“Crypto-currencies… raise issues with respect to consumer and investor protection, tax evasion, money laundering and terrorist financing. At some point they could have financial stability implications,” said a draft communique prepared for the meeting. “We agree that international standard-setting bodies strengthen their monitoring of crypto-assets and their risks,” The communique added that the meeting will “assess whether multilateral responses may be needed.”
Japan was the first country to adopt a national system to oversee cryptocurrency trading while in recent weeks France, Germany, the US and the EU have all said they plan to regulate their cryptocurrency markets. The Paris-based Financial Action Task Force, a 37-nation group set up by the G7 industrial powers to fight illicit finance, will also report to the G20 on ways to keep crypto-currencies from being used for money laundering.
The G20 will meet in Buenos Aires in on March 19 and 20.