India hosted the first G20 Financial and Central Bank Deputies Meeting under the Indian President in Bangalore, South India. 160 foreign delegates and representatives of her G20 member countries, including international organizations, attended the meeting. At this conference, member states unveiled their plans for cryptocurrency regulation. G20 countries have decided to implement new policies on digital assets.
The G20 is a unique intergovernmental forum with the participation of 19 countries and the EU.
Together, G20 members account for over 80% of the world’s total GDP, 75% of international trade, and 60% of the world’s population. It is a unique global institution where developed and developing countries have an equal voice.
The FTX bankruptcy created an atmosphere of suspicion and fear among cryptocurrency investors and users. The crypto market has been filled with uncertainty which is reflected in the price of crypto assets. An investor fears moving into crypto after facing huge losses in his recent FTX collapse. To avoid such situations in the future, the G20 countries have decided to introduce regulations on crypto assets.
Cryptocurrency regulations around the world
America
The head of the United States is formulating crypto regulation in the United States. Recently, the President of the United States directed members of Congress to draft legislation to regulate digital assets in the country.
Biden was initially uninterested in cryptocurrencies, but has since signed a document saying the industry was growing and that regulation would be needed to establish the country as a leader in the digital assets sector. The main US regulators that may be involved in the design and enforcement of regulations are the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
U.S. Treasury Secretary Janet Yellen has officially stated that the cryptocurrency industry needs strict regulation. Lawmakers supported Yellen’s statement. Many believe that the time has come to design and implement new regulations for cryptocurrencies.
CFTC Commissioner Christine Johnson advised cryptocurrency users:
European Union
Cryptocurrencies are considered legal assets in most EU countries. In September 2020, the EU government decided to launch the Markets in Crypto Assets (MiCA) framework. MiCa will help fight crypto funding schemes in EU countries.
The European Union is preparing drafts to regulate state privacy coins. Privacy coins are digital assets designed to protect the privacy of users’ identities and transactions. The well-known privacy coins Monero, Zcash and Dash will be banned in EU countries. The decision was made by EU financial institutions, mainly to avoid user traceability.
England
There are no specific laws regarding cryptocurrencies in the UK and the country considers crypto assets to be property but not legal tender. Also, cryptocurrency exchanges must be registered with the UK Financial Conduct Authority (FCA).
Certain regulations on cryptocurrencies by former UK Prime Minister Boris Johnson and former Finance Minister Liz Truss are making the UK economic system worse. Some fintech companies have set up operations outside the UK due to strict regulations. Most recently, the UK added regulations to freeze and recover stolen funds from crypto assets.
