The G20 Summit of finance heads of the member countries met during the weekend in Japan, and cryptocurrencies were among the major discussion points. The leaders, including finance ministers and central bank governors, have stated that the Financial Stability Board (FSB), and global regulators must work together to monitor risks around crypto assets.
The board admitted that crypto assets are not a threat to financial stability, which is ironic, considering the fact that member nations like India, Brazil, the US, and China have been quite hostile towards the industry. In its joint statement, the organization said,
While crypto-assets do not pose a threat to global financial stability at this point, we remain vigilant to risks, including those related to consumer and investor protection, anti-money laundering (AML) and countering the financing of terrorism (CFT). We reaffirm our commitment to applying the recently amended FATF Standards to virtual assets and related providers for AML and CFT.
The board also discussed the report by the FSB on decentralized financial technologies. The report discussed the possible implications for financial stability, regulation, and governance, and ways regulators can adopt to enhance dialogue with a larger base on crypto stakeholders. However, the board also showed its concern regarding cyber security and threats to it. It stated that the organization would take enhance efforts to improve cyber resilience, while also taking into account the progress made by the FSB in terms of identification practices for reaction and recovery from cyber attacks.
The G20 taking an active approach concerning the crypto industry is a welcome move. The efforts taken by the organization are commendable, though there are certain areas which it hasn’t addressed. One of the most important factors affecting global regulations is the lack of awareness about cryptocurrencies. The recent developments against Bitcoins in India and Brazil are perfect examples, where lack of knowledge resulted in adverse policies by the government.