As G20 summit 2018 approaches in March 19th & 20th, 2018 with cryptocurrency on its agenda, we studied the take of its member nations on the crypto market to understand the possible outcomes.
G20 summit 2018: big decisions for crypto market coming up
The upcoming G20 summit 2018 at Buenos Aires, in Argentina, has captured everyone’s attention. This meeting of central bank governors and finance ministers will take place on March 19 & 20, 2018. With the surge in the popularity of cryptocurrencies and blockchain, regulators and governments worldwide are trying to keep up with it. Every country has different take and approaches as some are supportive while others are waiting and then there are some that are ready to shut it all down.
Next week, G20 summit will be holding two separate discussions as a part of getting a common response to the regulation aspect. According to a public document, the focus of the second discussion on Tuesday is the implications of cryptocurrencies and potential applications of the blockchain.
Status of G20 nations on cryptocurrency?
As the next week approaches, the G20 governments are getting more active on their take on cryptos and blockchain technology. What could exactly be the outcomes of the upcoming summit, let’s explore each of these nations separately:
The host Argentina has adopted bitcoin and encouraged innovation through its passive approach. Japan is the most favorable cryptocurrency nation by recognizing them as payment instruments while making them liable for taxation.
One of the major markets for cryptos, South Korea is working on a KYC trading approach and ICO regulation.
EU is currently discussing the regulations on individual member basis, however, it wants stringent rules to prevent terrorist financing and money laundering. Russia has taken a measured approach by regulating cryptos and ICOs while restricting ads and ICO investments.
Positioning itself as the hub of blockchain innovation, Canada has taxed the crypto earnings. Italy and Turkey have no regulations while France is same in that regard, it is working on regulations and their taxation. Germany considers them legitimate and taxable but asks for additional licensing. Indonesia has no such regulations but bans fintech companies from using them for transactions.
Mexico has passed a bill on crypto being an illegal tender and to treat them as commodities that are taxable while the exchanges are in oversight of central bank. Saudi Arabia is taking a relaxed approach by working on its regulation but a ban is unlikely. So far South Africa has no regulation but is currently planning it.
The wait and see-rs
Australia has no such specific rules but it surely focuses on greater transparency through AML. Though India has stated cryptos as illegal tenders, the country is waiting for the world’s approach and then making the informed decision. Up until recently, UK has been waiting but recently has spoken of it positively while working towards preventing the consumers.
Brazil has banned cryptocurrency investments and is working on a wider regulation approach. Once a crypto favorable, China has taken the most strict step by banning ICOs and cryptocurrency trading.
Though the US isn’t outright in opposition, it has prohibited ICOs, enacted crypto exchange licensing; and illegal act and money laundering regulations.
What could be the possible outcome?
As a matter of fact, the majority of the nations tilt towards regulating the cryptocurrencies by protecting the consumer interests though AML and KYC. It is highly plausible that regulation would be in place instead of an outright ban, though ICOs can see more strict regulations as the members are a bit wary towards them.
What are your thoughts on G20 summit 2018 approach to cryptos and ICOs? Share your thoughts with us!
I am an entrepreneur and a writer with a bachelors degree in Computer Science. I manage the blockchain technology and crypto coverages at Coingape. follow me on Twitter at @arya_achal or reach out to me at achal[at]coingape.com.