Financial authorities from the Financial Stability Board (FSB) and 11 international organization have met in New York in order to discuss global standards of cryptocurrency regulations. After a year in which Argentina hosted the G-20 summit, Japan will be the new country planning the upcoming financial, political and economic meetings for the G-20 throughout 2019. This is very important for the future of virtual currencies because countries will be working on global crypto regulations.
Cryptocurrency Regulations At The Centre of the Stage
The Financial Stability Board Plenary discussed the current vulnerabilities in the current global financial system. The main intention is to find a way to better regulate digital currencies and how they affect the general economy. The members of the FSB include Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Singapore, Spain, Switzerland, Turkey, the United Kingdom, the United States, the European Union (EU), the Bank of International Settlements (BIS), the International Monetary Fund (IMF) and the World Bank (WB).
The FSB explained that the plenary discussed different initiatives to deal with the risks presented by cryptocurrencies. The board explained that they are working on two different areas, monitoring the financial stability implications and a directory of cryptocurrency asset regulators.
On the matter, the Board explained:
“Members took note of the continued rapid evolution of crypto-asset markets and the need for continued monitoring of developments… the FSB is exploring financial stability, regulatory and governance implications of decentralized financial technologies.”
There are different countries around the world that have been trying to regulate virtual currencies in their jurisdictions. However, things became very difficult for certain countries such as India, China or South Korea. At the moment, there are some countries like Switzerland and Malta that have created clear and friendly crypto regulations for firms and companies to be able to settle their operations in these nations.
The G-20 has also reaffirmed its support for the FATF and will continue working around them to fight against money laundering and terrorist financing.