While many world leaders are shouting out for a global regulation for cryptocurrencies the G20 watchdog says that Cryptos are not a risk and resist regulation.
The Financial Stability Board (FSB), the body that coordinates financial regulation for the G20 countries, has effectively dismissed calls from member-states to adopt global cryptocurrency rules. “The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time,” its Chair Mark Carney said in a letter to central bankers and finance ministers, Reuters reported.
Is this a step ahead for an unregulated growth of cryptocurrencies? Or is it a step back leaving crypto users in uncertainty?
The truth is that decentralized cryptocurrencies can not be regulated by its nature. What surely can be regulated are the users, exchanges and business that accept cryptos. Missing regulation means also missing taxes so in the long run governments will be interested to regulate the crypto market. The question is, why not now?
Representatives from G20 countries are meeting today in Argentina. Statements in several member-states suggested that crypto regulations would be on the agenda of the summit. In February, high-ranking French and German officials issued a letter urging their colleagues to discuss the implications of cryptocurrencies, like bitcoin, within the G20 format. According to recent reports from Tokyo, Japanese representatives intended to push for global rules on cryptocurrencies.
While some countries realize that the market is just in correction and will continue to rise, others believe that cryptocurrencies should not receive this importance at the moment when the total value in reality is very low. There is no worldwide consensus at the moment to reach agreements about what cryptocurrencies really are. Are they assets, currencies or any other kind of investment? There is no agreement so far and without agreeing on this points it is difficult to go ahead with regulation.
Lets see what is going to happen in the future. The financial system of fiat currencies need a reset and huge changes. The challenge of the big leaders of the world is to make them before most of people are tired and start pushing the cryptos to new high values.