Result from G20 finance ministers and central bank governor

Among the topics discussed at a G20 meeting of finance ministers and central bank governor in Buenos Aires, Argentina, the following was a summary of the crypto currency.

The most important statement was that the world should recognize the end of the traditional economy. They also said that crypto-asset should be introduced into society with regulation instead of prohibiting, and therefore taxation is necessary.

they announced that they would make recommendations for a global joint response to crypto-asset by July because they could not come up with immediate countermeasures or regulations. However, in the third round meeting held again on July 21 at the same place after four months, unlike what many people were expected there were no specific recommendations or regulatory measures, but only reaffirming the existing principle.

The G20 members believed that technological innovations in digital fields would help increase the efficiency of the global economy as well as finance. However, we agreed that crypto assets could pose a risk in issues such as consumer and investor protection, tax evasion, money laundering and financing terrorism. But they said it is not a threat to financial stability at this time.

The G20 has called on the Financial Stability Board and Financial Action Task Force to act. They are looking forward to see updated FSB observations on the potential risks of crypto assets. Previously, the FSB informed G20 that fluctuation of cryptocurrecies price, Initial Coin Offering (ICO), and use of payments are the things that need to be closely monitored.

The FATF was urged to clarify the recommendation for crypto assets by October. Last March, finance ministers from the G20 asked FATF to investigate how countries are responding to crypto asset

In a survey of G20 and invitation countries, 15 countries considered crypto asset as legal assets, and six countries stayed, four countries, including Korea agreed with limited access and China was only country that considered illegal.

The July G20, finance ministers and central bank governor meetings, which were expected to have a profound impact on the crypto market, have come up with no concrete measures to conclude.