Bitcoin and Crypto Market Braces for $15 Trillion Earthquake
Introduction
Bitcoin BTC, ethereum, and other major cryptocurrencies have been struggling under the weight of regulatory uncertainty. The Federal Reserve has expressed deep concern about the situation.
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The Crash and Market Impact
The bitcoin price, which reached almost $70,000 per bitcoin in late 2021, has crashed back, dragging down the wider $1 trillion crypto market. This includes ethereum, BNB, and XRP, even as payments giant Visa dropped a crypto bombshell.
G20 Endorses Crypto Regulation Recommendations
U.S. president Joe Biden and leaders of other G20 member nations have endorsed the radical, game-changing crypto regulation recommendations of the global Financial Stability Board (FSB).
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Financial Stability Board’s Recommendations
The Financial Stability Board’s high-level recommendations for the regulation, supervision, and oversight of crypto-assets activities and markets and of global stablecoin arrangements have been endorsed by the G20 leaders. The new rules would require bitcoin and crypto exchanges and companies to share information on crypto transactions between countries beginning in 2027.
Cooperation and Information Sharing
The FSB and the International Monetary Fund (IMF) recommended crypto cross-border cooperation and information sharing in a joint report to the G20. They warned that a blanket ban on bitcoin and crypto would be costly and difficult to enforce. However, they also stated that bitcoin and crypto should not be granted official currency or legal tender status, and central banks should avoid holding cryptocurrencies.
India’s Perspective
India’s finance minister highlighted the need for the cooperation of all countries in properly regulating bitcoin and crypto. The finance minister stated that India’s G20 presidency has put forward key issues related to regulating or understanding the need for a framework for handling crypto assets.
Implementation and Discussion
The G20 declaration called for the swift implementation of the crypto-asset reporting framework, which would give tax authorities greater visibility into bitcoin, ethereum, BNB, XRP, and crypto transactions and the people behind them. The roadmap for adopting the proposals will be discussed by G20 finance ministers and central bank governors in an October 2023 meeting.
