- Telecommunications Giant Vodafone Leaves the Libra Association
- Group of Central Banks Assesses Developing Central Bank Digital Currencies
- South Korea Might Impose 20 Percent Tax on Cryptocurrency Profits
- Report: Terrorists Increasingly Use Crypto to Raise Funds Anonymously
- Canadian Securities Administrators Subject Crypto Exchanges to Securities Laws
With the many ups and downs in the crypto space, I guess it is high time a sensible standard regulatory measure is formed. Fortunately, making it harder for cybercriminals and money launders may be closer than we think.
The upcoming G-20 summit scheduled for 8-9th of June at Fukuoka Japan promises to address this issue with the utmost priority. The organization, which consists of the top 20 key economies and includes finance ministers and central bankers, is expected to discuss several challenges facing the crypto space, and come up with a solution to various regulatory issues. We hope to see concrete regulatory plans for exchanges across the globe.
Previously, a global organized group of regulators, the Financial Stability Board, has already notified in April about the publishing of a directory of cryptocurrency regulators. This directory is expected to be presented at the G-20 Summit.
Cryptocurrency is a new form of virtual currency that encourages safe and seamless money transfer across borders without consulting the banking sector. This new medium of sending and receiving money is indeed a great way to send/receive money quickly and circumvent the ridiculous across-borders charges and fees.
That said, it is crucial to mention that cryptocurrency has also opened the door for several nefarious activities. Being a highly decentralized and privacy-oriented medium, these transactions are usually unregulated. Even though some of them can be traced, others are completely excluded from any transaction history or traceable tabs, making it a good spot for money launderers and cyber-criminals to play their games and go unscathed.
Countries Still Struggle with the Crypto Market
While some countries have laid down some form of regulatory laws, others are yet to join the wagon. What is the use of these stringent laws if the people will only migrate to other countries with friendly laws and continue operation? In 2017, Japan took the bull by the horn and became the first country to create a registry for cryptocurrency exchanges in the country. This allowed for a level monitoring and regulation in the crypto market. China also reacted to the upheaval in 2017 by banning crypto trading completely.
But how well did these stringent laws hold up? People only ended up setting up their business in other countries. This is why it is necessary for a general regulatory framework across the globe, so for criminals there will be nowhere to run to, and definitely nowhere to hide.
We earnestly hope that this year’s G-20 summit put a final end to the regulatory chaos in the crypto space. We will update you on the proceedings of the meeting as soon as we get them. Stay glued!