After skyrocketing to about $70,000 per bitcoin in late 2021, the bitcoin price has plummeted, bringing down the larger $1 trillion crypto market, which includes ethereum, BNB and XRP.
Now, as the bitcoin and crypto markets brace for a $15 trillion quake, US President Joe Biden and other G20 leaders have backed the global Financial Stability Board’s (FSB) extreme, game-changing crypto regulation suggestions.
“We endorse the Financial Stability Board’s high-level recommendations for the regulation, supervision, and oversight of crypto-assets activities and markets, as well as global stablecoin arrangements,” according to a declaration signed by Biden and other leaders of the world’s 20 largest economies, known as the G20.
Beginning in 2027, the proposed rules will oblige bitcoin and cryptocurrency exchanges and corporations to provide information about crypto transactions between countries.
In a joint report to the G20 earlier this week, the FSB and the International Monetary Fund (IMF) advised crypto cross-border collaboration and information sharing, warning that a blanket ban outlawing bitcoin and crypto would be costly and difficult to implement.
However, the paper also stated that bitcoin and cryptocurrency should not be designated as official currency or legal tender, and that central banks should refrain from holding cryptocurrencies.
El Salvador made history two years ago when it became the world’s first country to make bitcoin legal tender, prompting criticism from the banking sector.
The G20 resolution then called for the “rapid implementation of the crypto-asset reporting framework,” which would provide tax authorities with greater visibility into bitcoin, ethereum, BNB, XRP, and crypto transactions, as well as the persons behind them.
Ahead of the global leaders’ meeting, which includes the United States, the European Union, the United Kingdom, China, and Japan, India’s finance minister warned that it would be impossible to adequately regulate bitcoin and cryptocurrency without the collaboration of all countries.
“India’s [G20] presidency has put key issues related to regulating or understanding that there should be a framework for dealing with issues related to crypto assets on the table,” Nirmala Sitharaman said, according to Reuters.
The timeline for implementing the suggestions will now be reviewed by G20 finance ministers and central bank governors at a conference in October 2023.
Please note that this article does not offer any instructions or suggestions regarding investment decisions. It is important for you to conduct your own research or seek professional advice from a qualified professional before conducting an investment decision.