A recent G7 meeting said that the sector faces an ongoing need for regulation, as digital-asset regulation has been a hot topic in 2020.
It has been reported that in addition to talking about COVID-19 and economic issues, the group “also discussed ongoing responses to the evolving landscape of crypto assets and other digital assets and national authorities’ work to prevent their use for malign purposes and illicit activities.”
A public statement from the United States Department of the Treasury stated:
“There is strong support across the G7 on the need to regulate digital currencies. Ministers and Governors reiterated support for the G7 joint statement on digital payments issued in October.”
However, regulators have stepped up their engagement in the crypto sector in recent months. The US Department of Justice, in particular, has visited a number of headlines.
One of the biggest headlines of the year included the DoJ and the Commodity Futures Trading Commission going after crypto-native derivatives exchange BitMEX for allowing the US customers.
$Crypto needs more #regulation? @benjaminpirus reports on a recent #G7 meeting led by US Treasury head #SteveMnuchin. https://t.co/YJUfeNZOqE — Cointelegraph (@Cointelegraph) December 7, 2020
Likewise, the statement said that the members of the G7, as well as the International Monetary Fund, the Financial Stability Board, and World Bank leaders, participated in the meeting led by Steve Mnuchin, the US treasury secretary.
After the meeting, Germany’s finance minister notably expressed concern about Facebook’s Libra-turned-Diem asset by referring to it as “a wolf in sheep’s clothing.
Mnuchin tweeted about the meeting earlier on Monday by noting:
“Productive #G7 call this morning. We discussed the effective actions in response to COVID19, strategies to achieve a robust recovery, and cryptocurrencies.”
It has been analyzed that Bitcoin (BTC) has flown in price over the last few months, putting crypto under the mainstream spotlight.
Rumors predict that Mnuchin plans on dropping an impactful crypto-related ruling in the next few weeks pertaining to digital-asset wallets.
Thus, as per speculation, the regulation would essentially forbid users from utilizing personal crypto wallets outside of regulated exchanges.