5 Reasons Why G20 Cannot Snuff Out Crypto

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Weiss Ratings provides five obstacles why the G20 Cannot Snuff Out Crypto.

“There are five obstacles the G20 is likely to encounter, especially the difficulty of regulating a currency that is Internet-based and spreading globally far beyond the reach of governmental authorities,” said Martin Weiss, founder of Weiss Cryptocurrency Ratings.

The world’s financial authorities, widely expected to propose tough regulation for cryptocurrencies at their G20 meeting this week, instead surprised cryptocurrency investors by doing virtually nothing. In a report released today, Weiss Ratings founder Martin Weiss and cryptocurrency expert Juan Villaverde explain why it will continue to be difficult for the G20 to snuff out crypto.

“There are five obstacles the G20 is likely to encounter, especially the difficulty of regulating a currency that is Internet-based and spreading globally far beyond the reach of governmental authorities,” said Martin Weiss, founder of Weiss Cryptocurrency Ratings.

Here’s a summary of each:

Obstacle 1. The G20 finance ministers are too busy dealing with an imminent trade war.

Obstacle 2. Cryptocurrencies are borderless. So, until and unless regulation can be skillfully coordinated internationally, it will be pointless. China, which tried to ban crypto last year, learned this lesson the hard way; they simply lost crypto business to Japan and South Korea.

Obstacle 3. Many smaller and medium-sized nations, who are not G20 members, are far more receptive to adopting cryptocurrencies and less likely to join an internationally coordinated regulatory regime.

Obstacle 4. Crypto is much more than money. The technology underlying cryptocurrencies is advancing at a rapid pace, something that will be very difficult for any central authorities to restrain.

These technologies represent a new, scalable way for billions of people to reach consensus. They could change the collective decision-making processes that are at the very core of civilization.

Obstacle 5. It's too soon to predict how all of this will play out. Some in government still dismiss crypto as nothing more than a speculative bubble. Others are eager to mold or co-opt it. The majority are somewhere in the middle. They choose a cautious "wait-and-see" approach, while they try to get their bearings and figure out how this technology could impact the economy, society and government.

The obvious exception: Unregistered Initial Coin Offerings (ICOs), for which there is both an urgent need and a clear pathway for regulation, go here.

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