The concept of cryptocurrency needs constant reinforcement of certain guidelines to prevent any issue that might threaten the economy. The use of cryptocurrency in the market is surging, however, it is essential to introduce measures time and again to nullify the shortcomings associated with it. In the recent news, leaders from the group of 20 nations reiterated their pledge to regulate crypto assets after a meeting in Buenos Aires.
According to the members, the regulation of cryptocurrency is very much essential to curb money laundering and probable terror funding. Economists are aware of the illegal activities that are being promoted through virtual currency. The leaders from 20 nations are co-operatively working to build a stable economy. Therefore, the pledge came amid a broader section on building “an open and resilient financial system,” which the document noted “is crucial to support sustainable growth.”
In a declaration titled “Building consensus for fair and sustainable development,” the G20 participants committed to a number of measures to help grow the global economy. The document highlighted that the regulation of crypto assets is very much necessary. “We will continue to monitor and, if necessary, tackle emerging risks and vulnerabilities in the financial system; and, through continued regulatory and supervisory cooperation, address fragmentation. We look forward to continued progress on achieving resilient non-bank financial intermediation,” as mentioned in CoinDesk.
While most of the countries are introducing structured regulations in regards to digital assets, Switzerland is reverse in its approach. Ueli Maurer, the current finance minister of Switzerland, stated that no new blockchain regulations are essential as the current law is fine. The government is also proposing to change six laws next year, which would include some laws in the civil code and the bankruptcy law.
Therefore, the finance regulator feels that it would be simpler to just make small amendments rather than creating a whole new framework, as reported on Bitcoin Exchange Guide. Overall, many countries are introducing stringent guidelines in regards to crypto assets for sustainable development[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]