FX.co ★ G20 summit greenlights cryptocurrencies

The cryptocurrency market found solid support from leaders of the G20 group. At the summit in Argentine on July 21-22, financial ministers and central bankers from the G20 states could not avoid a discussion on digital money. In their communique, they acknowledged that cryptocurrencies do not pose a risk to the stability of global financial markets. In other words, the high-ranking officials have greenlighted virtual tokens.

Importantly, the participants agreed that the cryptocurrency market should be supervised by financial watchdogs. “While crypto-assets do not at this point pose a global financial stability risk, we remain vigilant,” the government officials stated. The recognition of the crypto-assets at the high-level talks revived the crypto market and propelled a rally. The first digital currency in the world, Bitcoin, has again grabbed the headlines. The comeback is being accompanied by growing demand and a steady advance of its price.

Another major decision is that the whole financial industry needs new standards for the crypto-assets which will be set out by the Financial Action Task Force (FATF). The standards will be submitted in October this year. It means that the status of cryptocurrencies has been eventually recognized. “Technological innovations, including those underlying crypto-assets, can deliver significant benefits to the financial system and the broader economy,” the communique reads. On the other hand, the popularity of the crypto-assets “raises issues with respect to consumer and investor protection, market integrity, tax evasion, money laundering and terrorist financing.”