G20 Summit Cryptocurrency

G20 Plan for Crypto Regulation by July 2018 Has Muted Effect on the Market

Mar 22, 2018, 11:17PM
1 min, 19 sec READ

Cryptocurrency regulation was a big topic at the G20 in Argentina. The summit produced a plan for regulating the industry by July of 2018.

Cryptocurrency regulation was a major topic at the G20 summit, where finance ministers and central bank governors met in Buenos Aires, Argentina this Wednesday. The summit released a communiqué calling for official cryptocurrency market regulations by July of 2018. This development doesn't seem to amount to the much feared "crackdown" on digital assets, and therefore it seems to have had little immediate effect on the market.

The document is based on statements from Frederico Sturzenegger, the leader of Argentina's central bank, who earlier called for a full examination of the burgeoning digital asset class. Wednesday’s developments resulted in a $50 billion rally for the total cryptocurrency market cap that swiftly retracted the next day.

Prices for Bitcoin rose above the key level of $9,000 on Wednesday before swiftly plunging to around $8,700 in the early hours of Thursday. Ethereum and Litecoin showed a similar pattern, settling at around $550 and $166, respectively. Bitcoin’s dominance has increased to 43% of the market’s $341 billion market cap.

The G20 document pays special attention to the technology behind Blockchain and touches upon the potential it has to improve the financial system. However, the communiqué also includes warnings about market fairness as well as tax evasion and other possible criminal activities that could be financed through digital assets. Overall, this looks to be a balanced and progressive development for the Blockchain industry, and the market response has been surprisingly muted so far.

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.