A lot of people are concerned that the G20 will crack down on cryptocurrency and potentially even ban Bitcoin and altcoins. So far, it seems those concerns are unnecessary, as the group has no immediate plans to intervene in this industry. In fact, the group has rejected the call for regulation, which is an extremely bullish signal for the industry as a whole.
G20 Rejects Crypto Regulation
Whenever the topic of cryptocurrency regulation comes up, there will be a wide variety of opinions. To some people, regulation is irrelevant, as cryptocurrencies can’t be regulated in the first place. With no central authority or company to provide access to this new form of money, there is very little regulators can do by default. Going after the service providers in this industry is not the right course of action either, as doing so will irk consumers first and foremost.
It seems the G20 agrees with this sentiment, as the group has officially rejected the call to regulate this industry moving forward. That decision comes as quite a surprise, considering both France and Germany were adamant on putting Bitcoin regulation on the G20’s agenda. It seems any concerns people may have had regarding Bitcoin regulation are pretty much moot right now. That is a good thing, although the topic may be revisited at a later time.
During a meeting Sunday afternoon, the G20 issued an official statement indicating that the global watchdog will review existing rules rather than design new ones. This means we will not see any new regulations for Bitcoin, altcoins, or other so-called “financial threats” anytime soon. It also confirms that the existing rules and guidelines do not apply to cryptocurrency, which will certainly be a thorn in the side of many regulators around the world.
When this news broke, the cryptocurrency markets seemingly breathed a sigh of relief. More specifically, the Bitcoin price shot up by about US$1,000 in a matter of hours. It is uncanny how many people perceive Bitcoin regulation as an actual threat these days, even though most experts are aware that such guidelines are pretty much irrelevant when it comes to consumers using Bitcoin and altcoins. After all, it is a form of money that cannot and will not be regulated.
Even though the global interest in cryptocurrency has never been higher than it is today, the G20 isn’t too concerned about the impact of these markets. While that doesn’t mean Bitcoin suddenly no longer poses a threat to financial stability, the prospect of regulating something that can’t be controlled isn’t all that appealing. It seems the G20 followed the ECB in this regard, as the institution made it clear it doesn’t want to get involved in cryptocurrency regulation either.
Whether or not this means the volatility in the cryptocurrency market is finally behind us remains to be determined. There is still a lot of bearish pressure on all markets as of right now, and it seems the current 24-hour gains could be wiped out in a matter of hours. For the time being, caution is still advised, even though the recent price dip has certainly created an excellent buying opportunity for both novice enthusiasts and investors alike.