{"id":70334,"date":"2018-07-27T19:00:38","date_gmt":"2018-07-28T02:00:38","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=70334"},"modified":"2019-11-07T02:54:32","modified_gmt":"2019-11-07T02:54:32","slug":"g20-refrains-from-regulation-vows-to-fight-money-laundering-at-recent-summit","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/g20-refrains-from-regulation-vows-to-fight-money-laundering-at-recent-summit\/","title":{"rendered":"G20 Refrains from Regulation, Vows to Fight Money Laundering at Recent Summit"},"content":{"rendered":"

At the last G20 summit in March 2018<\/a>, financial leadership from twenty of the world\u2019s most significant economies had wildly divergent opinions about the validity and risk of cryptocurrencies. While some countries feared that official actions by the group would provide more legitimacy than the relatively new currencies deserved, others worried that an unregulated crypto market could upend the established financial system.\u00a0<\/span><\/p>\n

Differences aside, when the meeting was over, participants pledged to enact <\/a>cryptocurrency legislation at their July meeting.<\/p>\n

However, the July meeting has come and gone, and the G20 neglected to issue sweeping regulatory guidelines for digital currencies.\u00a0<\/span><\/p>\n

Crypto Doesn\u2019t Present a Problem\u00a0<\/span><\/h2>\n

In the lead up to the summit, the Financial Stability Board (FSB), the G20s regulatory watchdog, concluded that cryptocurrencies do not pose a substantial risk to the global economy, but were deserving of further observation.\u00a0<\/span><\/p>\n

In their official communique<\/a> following the event, the G20 echoed that sentiment writing,\u00a0<\/span><\/p>\n

\u201cWhile crypto-assets do not at this point pose a global financial stability risk, we remain vigilant.\u201d<\/p><\/blockquote>\n

In short, crypto markets, while robust, are not widely integrated into the traditional financial system, so it\u2019s unlikely that a crypto crash would impact the broader financial system.\u00a0<\/span><\/p>\n

As Jeffrey Kleintop, chief global strategist at Charles Schwab, recently told Time<\/a>,\u00a0<\/span><\/p>\n

\u201cFor a potentially destructive bubble to form, cryptocurrencies need to be far more adopted and become a much larger share of household assets or the assets of leveraged investors like banks or some hedge funds.\u201d<\/p><\/blockquote>\n

Moreover, in an unidentified but unmistakable way, the G20 heaped high praise on blockchain technology that underpins cryptocurrencies, noting in a communique,\u00a0<\/span><\/p>\n

\u201cTechnological innovations, including those underlying crypto assets, can deliver significant benefits to the financial system and the broader economy.\u201d<\/p><\/blockquote>\n

However, the G20 expressed several concerns about the proliferation of crypto-assets including:\u00a0<\/span><\/p>\n