Cryptocurrency Regulation on the agenda at the G20 Summit.

Posted on Friday March 16, 2018

By Thomas Hulme, Trainee Solicitor 

On 19 – 20 March 2018, finance ministers and central bankers from a group of 20 major economies will meet in Buenos Aires as part of the G20 Summit.

Cryptocurrency regulation is on the agenda and discussions will focus on anti-money laundering and consumer protection.

The Financial Conduct Authority granted US-based company Coinbase, a licence in relation to anti-money laundering on 14 March 2018. It is expected that this is the kind of regulatory measures that will be discussed to address the criminal activity which has been conducted in relation to cryptocurrencies.

It is my view that too stringent regulation would have a negative effect on cryptocurrency market and could end its progression. However, a balanced view would give confidence to businesses and consumers and may see more activity in this area.

In the last month, there have been several examples of government and regulatory actions towards cryptocurrencies. This shows acknowledgement that cryptocurrencies and blockchain have a potential to be used in a positive and productive way but also that the illegal activity within cryptocurrencies needs to be addressed.

The discussion of cryptocurrency regulation at the G20 summit, the current UK governmental inquiry and the recent FCA licence granted are as a result of consumers and business being targeted by criminals.

I would continue to be wary of cryptocurrencies until there is an official statement from a recognised governing body or an increase in regulation. Until this happens, it is my view that cryptocurrencies will continue to be viewed sceptically and abused by criminals.

Thomas Hulme

Trainee Solicitor, London
  44 (0) 20 7240 0521
 00 44 (0) 20 7240 9457