With the Federal Reserve expressing its “deep concern,” major cryptocurrencies like bitcoin, ethereum, and others have been struggling due to regulatory uncertainty.
After skyrocketing to about $70,000 per bitcoin in late 2021, the price of bitcoin has since plunged precipitously, bringing down the whole $1 trillion cryptocurrency industry, including ethereum, BNB, and XRP (even as payments giant Visa delivered a crypto bombshell).
President Joe Biden of the United States and the heads of other G20 members have backed the radical, game-changing suggestions for crypto regulation made by the Financial Stability Board (FSB), as the bitcoin and cryptocurrency industry braces for a $15 trillion earthquake.
In a statement signed by Biden and other leaders of the world’s 20 biggest economies—collectively known as the G20—they endorse the Financial Stability Board’s high-level recommendations for the regulation, supervision, and oversight of crypto-assets activities and markets as well as of global stablecoin arrangements, according to local media reports.
Beginning in 2027, the proposed regulations would compel bitcoin and cryptocurrency exchanges and businesses to share data on crypto transactions between nations.
Earlier this week, the FSB and the International Monetary Fund (IMF) warned that a general ban against bitcoin and other cryptocurrencies would be expensive and difficult to implement in a joint report to the G20.
The research also recommended that central banks stay away from holding cryptocurrencies and that bitcoin and other cryptocurrencies shouldn’t be designated as official currencies or given legal tender status.
El Salvador made history by becoming the first nation to ever recognize bitcoin as legal cash two years ago, drawing ire from the financial industry.
The G20 declaration also called for the “swift implementation of the crypto-asset reporting framework” to provide tax authorities more insight into bitcoin, ethereum, BNB, XRP, and other cryptocurrency transactions and the parties involved.
The finance minister of India issued a warning prior to the summit of world leaders, which will feature representatives from the U.S., the E.U., the U.K., China, and Japan, saying that without international cooperation, it would be impossible to effectively regulate bitcoin and other cryptocurrencies.
According to Nirmala Sitharaman, the [G20] presidency of India has raised important questions about how to regulate or recognise the need for a framework to handle problems relating to crypto assets.
The G20 finance ministers and governors of the central banks will now talk about the adoption timeline at a meeting in October 2023.
