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Bitcoin Assassination – The G20 Crypto Menu for October 2022

The G20 at the anti-Bitcoin table– The haters of Bitcoin (BTC), the king of cryptocurrencies, are numerous. Of Bill Gates passing through the China, and more recently UK regulation, they are the ones shaping future regulation for cryptocurrencies. the G20 now joins this family.

Bitcoin and cryptos, soon to be on the agenda at the G20

The G20: custodian of 80% of global GDP

the G20 is an organization that allows international powers to agree on fundamental issues. Its members together constitute 80% of GDP global. The United States, Brazil, China, Russia and France are among them.

the FSB (Financial Stability Board) is an organization attached to the G20, based in Switzerland. By virtue of its function, the FSB must coordinate and promote the international financial stability. It gives impetus to the subjects dealt with by the G20 which, in its declaration soberly called “FSB Statement on International Regulation and Supervision of Crypto-asset Activities”, wants to tackle the regulation of cryptocurrencies. The recent decline of the cryptocurrency market, symbolized by theTerra Blockchain Collapsemotivates the body.

“Recent turmoil in crypto-asset markets highlights their inherent volatility, structural vulnerabilities and the question of their growing interconnectedness with the traditional financial system. »

FSB Statement

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The Potential of Crypto-Assets Knowingly Ignored

We then have some appetizers to understand how Bitcoin will be tasted. The themes will be: regulatory approaches and the monitoring of cryptocurrencies as well as stablecoins. However, the treatment of these themes ignores certain subjects. Also, the potential of blockchain technology is barely whispered at the end of the statement.

The finance ministers and central bank governors of the G20 member countries will receive a report in October 2022. A second public consultation report on the recommendations provided by the FSB will also be published afterwards.

In what sauce will Bitcoin be tasted?

The main focus of the declaration remains all the same – perhaps sit down before continuing your reading – the need for a adaptation of decentralized finance to the rules of traditional finance. In other words, according to the FSB, cryptocurrencies must adapt to the rules that already exist:

“There may be spillover effects to important parts of traditional finance, such as short-term funding markets. An effective regulatory framework must ensure that activities related to crypto-assets presenting similar risks to those of traditional financial activities have the same regulatory results (…). »

Furthermore, the FSB is also thinking of stablecoins. According to him, there should be a unified global regulation:

“Such a stablecoin must be subject to high standards of regulation and transparency. Reserves that preserve value stability and meet relevant international standards must be maintained at all times. »

L’cryptocurrency instability would then be a risk for the world economic order. The FSB therefore wishes to promote the overall consistency of regulatory approaches for cryptocurrencies:

“Crypto-assets and markets must be subject to effective regulation and supervision commensurate with the risks they present, both nationally and internationally. (…) Crypto-assets and markets can perform an economic function equivalent to that of traditional financial sector instruments and intermediaries. »

Don’t cry wolf! Administration can be slow, especially internationally. the FSB has no more no legislative power. However, he launches the hostilities of a G20 which would attack Bitcoin and cryptocurrencies. Other jurisdictions thus share this vision of regulation for Bitcoin. Recently, England had moreover announced that cryptocurrencies could be a financial risk.

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