G20 rejects calls for harder cryptocurrency regulation
Prices are rallying after the G20 meeting resists new cryptocurrency regulations.
The G20 financial stability board (FSB) has rejected calls for harder cryptocurrency crackdowns, deciding that it does not currently pose a significant risk to global financial stability, Les Echos reports. Instead of laying down new rules for cryptocurrencies, existing laws should be revised to cover them more effectively, Mark Carney argued in a letter to the FSB ahead of the meeting. This may be the stance the FSB will adopt going forward.
In addition to the strengthening of additional new rules, the initial G20 meeting has reportedly emphasised the importance of a better coordinated international response to cryptocurrencies going forward.
The need for a coherent multinational regulatory response is a growing concern for many, and several prominent figures have previously stressed the importance of a multinational regulatory approach, and the inherent limitations of trying to regulate borderless technology like cryptocurrency on a national level. This echoes issues previously raised.
For example, South Korea's finance minister has previously urged for more international regulatory cooperation with China. And many have argued for more cooperation between regulatory bodies within countries. Similarly, others have stressed the importance of updating existing laws on a global basis, rather than risking the creation of an unnecessarily complex patchwork of regulations around the world.
Cryptocurrency markets appear to be welcoming the news. A stressful week for the markets, likely driven by regulatory doubt and all-around cryptocurrency investor ennui has given way to a sharp rebound.
There was a lot of uncertainty ahead of the G20 FSB meeting this Monday, but speculators seem to have welcomed its outcome. It's still not clear how day two will wrap up, but many are probably expecting a continuation of today's positive tone.
Disclosure: At the time of writing the author holds ETH, IOTA, ICX, VEN, XLM, BTC, NANO
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