The cryptocurrency industry is scheduled for regulation, no thanks to G-20 leaders reiterating their pledge to introduce financial policies in the sector. Among other discussion concerning the global economy held in the G-20 meeting in Buenos Aires, the question of the state of affairs of the crypto industry popped up.
Leaders maintained their stance that the digital assets industry needed “greater regulations.” The news from G-20 meeting had its impact on digital assets’ prices with Bitcoin dropping by about 4%, Ethereum declined by nearly 5.3% while Ripple’s XRP and Litecoin plunged 4% and 7.3% on different exchanges.
Well, that is exactly how cryptocurrency investors and traders perceive the idea of regulating the industry. Although it is evident that the sector houses lots of the perpetrators of financial crimes, the sector will no longer be appealing to investors would it be subject to central banks regulations.
A good number of cryptocurrency users were attracted by the original concept of cryptos of taking the control currencies from a central power and vesting it with the masses, what G-20 leaders are proposing is the exact opposite of what users envisioned.
Stamping out financial crimes
Nonetheless, the leaders believe that by regulating the rogue sectors, besides protecting investors, central banks would be able to curb the financial crimes of money laundering and financing of terrorism activities. Regulations will also help prevent incidences of digital theft through hacking.
Hackers in particular have robbed investors of billions of dollars and thanks to the complexity of the cryptocurrency concept -it has been extremely difficult to trace the perpetrators. It is for this reason among others that the G-20 leaders feel that the sector needs to be regulated.
A section of the G-20 declaration read; “We will regulate crypto-assets for anti-money laundering and countering the financing of terrorism in line with FATF standards and we will consider other responses as needed.”
This comes after the head of SEC stated that the U.S should not make adjustments to its SEC regulations to accommodate cryptos and the Blockchain technology. The SEC boss is of the opinion that technologies comply with SEC rules and not the other way round.
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