Soon a globally harmonized regulation for cryptocurrencies? This is what the latest G20 declaration, co-written by representatives of the world’s most important countries, suggests.
Global regulation soon?
Since two weeks, cryptocurrencies are at the heart of debates which call into question the effectiveness of the regulations and legal rules currently in place.
The fall of FTX, caused by his disastrous management of his clientele’s fundsurges countries around the world to take steps to ensure that such an event does not happen again.
👉 FTX: the answers to all your questions about the affair that is shaking up cryptocurrencies
Following pronouncements from the United States Securities and Exchange Commission (SEC), the Financial Services Agency of Japan and the Financial Stability Board (FSB), G20 leaders recently met and discussed a future global regulatory framework for cryptocurrencies.
According to the statement of the G20 leaderswritten in Bali on November 16, 2022:
“It is essential to raise public awareness of risks, strengthen regulatory outcomes and support a harmonization of existing rules, while harnessing the benefits of innovation. »
Remember that the G20 is a global economic governance forumwhich annually brings together state and ministerial representatives of the most powerful states in the world.
Consequently, FTX can be perceived as the accelerator of reflections relating to regulation of the cryptocurrency industry.
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The slow construction of regulation
Despite the goodwill of companies operating in the cryptocurrency sector, regulation cannot be built instantaneously. It can only be done following a democratization of the stakes of the sector among political personalities.
Furthermore, blockchain-related technologies evolving very quicklythe regulation must be updated regularly to avoid legal obsolescence, without being voted in haste.
Consequently, the proposals set out in the G20 document are only suggestions for countries developing their own regulations on the subject:
We welcome the ongoing work of the FSB and international bodies ensuring that the cryptocurrency ecosystem, including so-called stablecoins [stablecoins]is closely monitored and subject to strong regulation, supervision and control to mitigate risks to financial stability.
Today, each State applies its own legislation, which is not harmonized at the global level. : only in the heart of the European Union, it is only recently that a proposal for a regulation (MiCA) was voted to standardize the rules in force in the cryptocurrency sector.
But before regulatinga distinction should still be made between traditional finance and decentralized finance.
👉 To learn more about future European legislation regarding the crypto ecosystem.
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Sources: G20 Statement
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