Is G20 Announcement for Cryptocurrency Regulation Good News?
Leaders from20 developed countries gathered in Argentina last week to find solutions for business and political problems in the world. The business community all over the world has appreciated the announcement of a truce between the US and China over the trade war, thanks to Donald Trump’s meeting with the Chinese president on the sidelines of the G20 summit.
The world leaders also responded positively about the cryptocurrency markets; they announced to take collective measures to regulate cryptocurrency markets.
“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,” according to the declaration from G20 countries.
The countries are looking to provide a legal cover to crypto markets to oversee their activities to abolish criminal activities.
Is it Good for the Long-Term Fundamentals of Cryptocurrency Markets?
Investors and market participants have aggressively been looking towards governments all over the world to take collective measures for cryptocurrency regulations.
The majority of Wall Street investors feared to invest in digital coins amid lack of regulatory control and illegal activities in cryptocurrency exchanges. This is because the announcement of the G20 countries for cryptocurrency regulation appears to be a good step for future fundamentals.
The collective measure from G20 countries would also encourage countries like China, India, and Argentina to establish a new legal framework for virtual currencies.
“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,” the G20 declarations says.
Some investors are showing concerns over the announcement as they believe overregulation could create hurdles for the emerging markets in attracting new capital.
Besides these concerns, the market has appreciated the stance of the top 20 countries towards the cryptocurrency markets. Some traders are now speculating that regulations would also pave the path for Bitcoin ETFs’; the SEC had recently rejected several Bitcoin ETF’s applications due to the unregulated nature of the market.
The SEC Chairman had said, “What investors expect is that trading in the commodity that underlies that ETF makes sense and is free from the risk of manipulation. It’s an issue that needs to be addressed before I would be comfortable.”
On the whole, regulations would help cryptocurrency exchanges in creating a healthy trading environment for investors along with streamlining the rules for ICO’s.
Do you believe the G20 announcement would help cryptocurrency markets create a bullish pattern? Express your thoughts in the comment section below.