The world’s financial leaders the financial ministers and central bankers from G20 countries are meeting in Argentina to discuss on the possibilities of regulating the cryptocurrencies, according to Reuters. Due to a surge for in the prices of Bitcoin (BTC) and the rampant cyber attacks involving the digital assets, the global regulators have raised concerns about the industry.
The meeting is intended to bring solutions on the ‘crypto assets’ to make sure that its growth do not pressure the financial stability of the countries. Some nations including France have proposed regulating of the crypto assets but most countries have declined to change their position on the subject. Countries such as US and UK have continuously rejected the notion that the digital currencies can be treated as the financial assets and hence fear regulating the industry.
The global watchdog is expected to consider reviewing the existing rules to regulate the cryptocurrency industry. The surge experienced last year when the prices of Bitcoin sky-rocketed attracting a huge number of investors to venture into the new industry only for the prices to tumble in the following months.
The move triggered warnings particularly from the regulators about the future of the sector. As a result, international coordination is required to prevent the likely problems that may arise in the future.
Last year, the US President Donald Trump ordered his regulators to examine the impact of the cryptocurrency activities. The move brought fears among the investors in the virtual currencies across the world about the outcome of the review of the sector.
The Financial Stability Board (FSB) that is in charge of coordinating the financial regulation for the G20 nations, has declined to listen to the crypto enthusiasts who advocate for the regulation of the cryptocurrencies such as Bitcoin.
Despite the huge benefits that the Blockchain technology and other crypto assets are bringing to the economies in terms of the safety and transparency of the transactions, most G20 countries are still adamant to support the sector due to several reasons including lack of knowledge.