The adoption of cryptocurrencies will reach levels never seen before, thanks to the new bill proposed by the G20. The G20 is an international organization for central bank governors and governments of twenty countries on different continents, including the United States, China, the European Union, and seventeen other countries.
Why is G20 support for cryptocurrencies big news?
The G20's interest in virtual currencies is a great victory for all digital currencies, the result of the successful passage of this bill is clear: the massive adoption of cryptocurrencies. This is because the G20 countries represent 90% of gross world income (all combined gross national income of all countries in the world). 80% of world trade is also conducted in these counties. They also represent almost half of the world's land area and two thirds of the world population.
G20 is willing to comply with FATF cryptocurrency guidelines
Founded in 1989, the Financial Action Task Force is an international body created to combat money laundering. This month, the FATF held its Annual Private Sector Advisory Forum in Austria, where topics related to cryptocurrencies were discussed.
Reaffirming that the established standards and recommendations for implementing digital currencies still remain, the FATF proceeded to show its support for virtual currencies, saying that virtual assets could be significantly useful and beneficial to the global economy.
In response to this, the G20 countries have agreed to comply with the established guidelines. Russia, one of the G20 members agreed to establish a regulatory framework for his country. Initially, it was scheduled for July last year, but will now be rolled out this month.
Another G20 member Japan is actively working to see a regulatory framework in place. China and South Africa, two countries where cryptocurrency regulatory frameworks have not been fully approved, could see a change this year.
South Korea has also said it will prioritize regulatory standards and work to make them consistent. Choi Jong-Ku, chairman of the Financial Services Commission, emphasized the need for the countries involved to be consistent with regulatory standards, explaining that the removal of inconsistent regulatory frameworks is key to fully regulating virtual currencies, which could accelerate the global acceptance of digital currencies.
Strict cryptocurrency guidelines may be modified this year
Despite the fact that the rules set forth by the FATF are intended to ensure that cryptocurrency companies and exchanges carry out activities effectively, comments from Chainalysis, a blockchain analytics firm, noted that the guidelines left room for possible future implications. They could hinder exchanges and related cryptocurrencies alike.
As the conference approaches, the FATF has announced that it is working towards the amendments. Meanwhile, the European central bank has said that the financial risks to which cryptocurrency adoption could lead can be managed.