G20 Ministers, Central Bank Governors To Discuss Cryptocurrency Regulation

The Group of Twenty (G20) finance ministers and central bank governors are set to discuss next week an international regulatory framework to bring cross-border Cryptocurrency operations under unified control.

The meeting in Argentine capital Buenos Aires will focus on the policies needed to protect the global economic upswing against downside risks, and to finalize much-needed reforms to bolster growth.

Cryptocurrency is an important item on the meeting’s agenda, according to CoinDesk, a digital currency news site.

The agenda has not been released, but a public document indicates that the discussions will revolve around the implications of cryptocurrencies and the potential applications of its underlying technology.

Delegates will consider a common response that would mitigate the risks without discouraging innovation.

Finance officials from the US and Europe have been calling for developing a regulatory framework to deal with the challenges posed by cryptocurrency markets to the economy.

US Treasury Secretary Steven Mnuchin said his concerns revolve around the use of cryptocurrencies in illegal activities like money laundering, while the Netherlands’ Finance Minister said in a letter sent to the Dutch Parliament last week that he intends to work with his European counterparts to develop an international regulatory framework for crypto markets.

IMF Managing Director Christine Lagarde said Thursday that there is room to develop international regulatory principles for crypto assets including initial coin offerings (ICOs).

In a blog post she wrote on IMF website ahead of the summit, Lagarde said the goal should be to harness the potential of the underlying technology, while ensuring financial stability and mitigating the risks from money laundering and terrorism financing.

by RTT Staff Writer

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