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The members of the Group of 20 (G-20), an international forum for governments and central banks of countries with developed and developing economies, addressed cryptocurrencies in their recent declaration on the sustainable development of the global economy .
Summary of the declaration: cryptography is important, but must be subject to control and to tax regulations
On December 1, the G-20 Declaration entitled "Building Consensus for Fair and Sustainable Development" was published on the official website of the Council of the European Union and the European Council. The document summarizes the 13th G-20 gathering of nations that took place on November 30 and December 1 in Buenos Aires, Argentina.
The declaration concerned the encryption, albeit briefly: cryptocurrencies are only mentioned once there, in the broader context of an "open and resilient financial system" that "is fundamental to sustaining sustainable growth".
While recognizing the importance of the cryptocurrency industry for the global economy, the G-20 also noted that it will introduce anti-money laundering (AML) and counter-terrorism measures for the Financial Action Task Force (FATF) standards, an intergovernmental body formed to combat money laundering and terrorist financing:
"We will regulate crypto-assets for money laundering and fight terrorist financing in line with FATF standards and consider other responses if necessary."
Furthermore, in the same segment of the declaration, G-20 participants expressed a positive position towards non-bank financial institutions, highlighting the potential advantages of technology in the financial sector, given that technological innovators are managing the associated risks:
"We look forward to continued progress towards non-bank resilient financial intermediation and we will increase efforts to ensure that the potential benefits of technology in the financial sector can be realized while risks are mitigated."
However, there are other encrypted news coming from the international summit. On December 2, the Japanese daily Jiji reported that the G-20 countries also called for international cryptocurrency taxation. According to the publication, the final text of a document prepared in cooperation by the leaders of the G-20 outlines "a system of taxation for cross-border electronic payment services".
The article specifies that – according to applicable laws – foreign companies that "do not have a factory or other base in Japan" can not be taxed by the local government, while G-20 leaders try to "build a system of taxation for cross-border electronic communications ". Services."
The Japanese newspaper also mentioned an estimated deadline for the system, stating that the final version of the regulations, after examining the proposals of each member state, should be introduced by 2020. The issue will be discussed next year, when Japan will become the host of the summit and Japanese Prime Minister Shinzō Abe will assume the post of president of the G-20.
Previous comment of the G-20 on crypto
G-20 officials have previously maintained a "hands-off" approach to cryptography. In March 2018, after a call from the French finance minister, Bruno Le Maire, the G-20 participants concluded the first public debate on virtual currencies.
The meeting ended with a "firm" deadline in July that was proposed for "very specific recommendations" on how to regulate cryptocurrencies globally, despite the Financial Stability Board (FSB) – the group that coordinates the regulation financial for the G-20 economies – resisting calls from some G-20 members to discuss cryptocurrency regulation at the conference.
In addition, many of the G-20 participants decided that cryptocurrencies had to be further examined before making a normative move, although some countries, including Brazil, said they would not follow the G-20 recommendations.
Nonetheless, G-20 members agreed that the FATF would apply its standards to the cryptocurrency markets in their respective countries, a position recently reiterated in Buenos Aires:
"We are committed to implementing FATF standards when applying to crypto-assets, I look forward to the FATF review of these standards and we call on the FATF to promote global implementation.We ask the international standards-setting bodies (SSBs) to continue monitoring crypto-activities and their risks, according to their mandates, and to evaluate multilateral responses as necessary. "
In July, a summary of the interim decisions taken by finance ministers and central bank governors stated that "technological innovations, including those underlying the cryptoassets [sic], can offer significant benefits to the financial system and the economy in general. "However, the document also listed various related issues, including tax evasion and concerns related to LAM:
"Cryptographic assets, however, raise issues related to the protection of consumers and investors, market integrity, tax evasion, money laundering and terrorist financing".
However, current recommendations on how to deal with the sphere of cryptocurrency internationally have not been presented, and the deadline has been suspended until October 2018:
"[W]Ask the FATF to clarify, in October 2018, how its standards apply to crypto-assets, "reads the summary: It is not clear whether these recommendations have been presented to date, as there have been no information from the G-20 on this issue.
On October 22nd, while the G-20 remained silent, Jeremy Allaire, managing director of Crypto Investment's Circle App, supported by Goldman Sachs, said that regulatory aspects related to cryptography must be addressed "at the G20 level". On October 19, FATF stated that by June 2019 jurisdictions will be obliged to grant licenses or regulate cryptocurrency trade, and some companies will provide internationally encrypted portfolios as part of anti-terrorism and anti-terrorism procedures.
More international action
In several news regarding the adoption and international regulation of cryptographic technology, on December 4, seven Southern European countries – including France, Italy, Spain and Malta – formed an alliance called "seven Mediterranean "with the aim of promoting the use of distributed technology ledger (DLT) among governments, as per the Financial Times. The EU, as well as Italy and France, are members of the G-20 alliance.
More specifically, the EU countries have signed a statement stating that areas such as "education, transport, mobility, shipments, land registry, customs, business register and health" can be "transformed" and enhanced with use of the DLT.
"This can not only lead to improved e-government services, but also greater transparency and lower administrative burdens, better customs collection and better access to public information", stated in the statement.
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