Last week, G-20 leaders met in Buenos Aires and issued a joint declaration vowing to establish a regulatory framework for digital currencies.
They made the pledge at the recommendation of the Financial Action Task Force.
During the two-day meeting, which ended on Dec. 1, the leaders said, “We underlined the need to lay out all political tools available to promote global growth, specifically paying attention to cryptocurrencies and how the global economy became more digitalized.”
According to the declaration, “Digital assets are intended to support an open and resilient financial system, grounded in agreed international standards.” It added that digital assets, which are subject to global standards, are key to the growth of economic sustainability.
The leaders agreed to “establish a crypto regulatory policy,” which the inter-governmental body would frame.
In the late 1980s, the G-20 leaders launched an inter-governmental panel with the aim of tackling money laundering and terrorist financing.
The declaration said, “We will step up efforts to ensure that the potential benefits of technology in the financial sector can be realized while risks are mitigated.”
“We will regulate crypto-assets for anti-money laundering and countering the financing of terrorism,” the declaration said.
It also underscored the “need for developing an advanced and uniform taxation system to address issues arising from the growing digital nature of the global economy.”
“We will continue our work for a globally fair, sustainable, and modern international tax system … We will continue to work together to seek a consensus-based solution to address the impacts of the digitalization of the economy on the international tax system,” it noted.
The leaders agreed to provide an update when they meet in Japan next year.