Does the Group of Twenty (G20) Support the World of Cryptocurrencies?

Does the Group of Twenty (G20) Support the World of Cryptocurrencies?

Group of Twenty (G20) is composed of twenty premier economies which totally includes 85% of the world’s economy. The ministers of economy and CEOs of central banks are present in this group; hence, the decisions made in it and the news about it are carefully followed in the media. The news about the recent summit of G20 implies that these countries have greenlighted cryptocurrencies and it has been planned to apply some rules in this regard and cryptocurrencies continue living more powerfully. Europe, the U.S., South Korea, China, and Japan are all in this summit and in agreement in using cryptocurrencies and legalizing them.

Why Do Cryptocurrencies Need to Be Legalized?

Cryptocurrencies can be an infrastructure for fraudulent activities. This point has strongly been attended to in the world in the first years of their activity, and there were some measures from delinquent and dangerous gangs to do financial trades in the Blockchain infrastructure. So, the issue of security and getting the hands-off from this infrastructure have always been one of the basic concerns of all stakeholders in the market of cryptocurrencies. Money laundering is one of the other problems which can be carried out in the infrastructure of the networks such as Blockchain and through cryptocurrencies.

Financial Action Task Force (FATF) has offered some pieces of advice to combat fraudulent measures in the world of cryptocurrencies. It is considered an intergovernmental organization and works in combating money laundering. FATF believes that the organizations which are active in the field of cryptocurrencies should offer some reports from their performance and measures. These reports become necessary when questionable transactions and activities occur in these organizations.

What Should Be Done to Track the Activities of Cryptocurrency Organizations?

Despite the surveillance on the performance and activity of organizations present in the market of cryptocurrencies, the need to track some data gets more. For example, it is necessary for these companies to report the name of cryptocurrency transactions, the address of their digital wallet or their identity data. G20 intends to create a mechanism to have more surveillance and control on the atmosphere of cryptocurrencies. In case it is done, virtual currencies will be placed in a legal framework, and their investigation will become simpler and more feasible.

Considering the rules introduced and supported by G20, using cryptocurrencies will draw the attentions more in the world. In the opinion of this group, new technologies enjoy many glorious capacities; so employing their capacities can create fundamental changes in the economy and trade. Because of that, it is taking some steps in legalizing it.

How Is the Outlook of Cryptocurrencies?

Cryptocurrencies have an extraordinary capacity in communications and economic transactions. This feature avoids their isolation and being withdrawn. When the countries in G20 which are among the most important countries economically, greenlight cryptocurrencies and are to structuralize and legalize them, it should be expected that in the foreseeable future, different countries of the world pay attention to these unreal currencies.  

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