It’s Official: G20 Regulates Crypto – But Is This Good For The Market?

The G20 Summit which took place in Argentina was in many headlines on our DC Forecasts crypto news site, mainly for covering the topics around Bitcoin and blockchain. The forum’s main aim, however, was to regulate the crypto sector.

Luckily, the world’s 20 largest economies have decided to regulate the crypto sector. As a regulation released by the forum states:

“We will regulate crypto-assets for anti-money laundering and countering the financing of terrorism in line with FATF standards and we will consider other responses as needed.”

The G20 Countries have signed a joint declaration in Buenos Aires, where it promises to regulate #crypto & combat its use for money laundering & the financing of terrorism in line with the Financial Action Task Force (FATF) standards — @CryptoCoinsNews https://t.co/0nKGqzcsL5 pic.twitter.com/aCunWWvAY9

— ACTUAL Group (@ActualGrp) December 3, 2018

What many are afraid right now, however, is the fact that over-regulation restricts the growth of emerging asset classes and technologies by limiting the way companies can grow in the long run.

Still, it is safe to say that regulators can facilitate the growth of cryptocurrency companies, especially exchanges which require fiat on-ramps – by providing seamless access to legacy systems and banking services.

The G20 also said that it intends to help crypto create an open and resilient financial system and emphasized that it is crucial to “support sustainable growth.”

And while over-regulation can hurt businesses in their early phase of growth, the G20 believes that monitoring and tackling the risks is what will help eliminate the barrier between crypto and the traditional finance sector.

“We will continue to monitor and, if necessary, tackle emerging risks and vulnerabilities in the financial system; and, through continued regulatory and supervisory cooperation, address fragmentation. We look forward to continued progress on achieving resilient non-bank financial intermediation,” a statement from the forum concluded.