Critical Cryptocurrency Statement from Biden and G20 Leaders!

Critical Cryptocurrency Statement from Biden and G20 Leaders!

The G20 summit took place in Indonesia this year. At the summit, all state leaders except Russian President Putin shared their views. Especially the emerging crypto money industry was at the forefront. We convey to you what was spoken at the G20 summit.

Country leaders made statements about cryptocurrencies

Bitcoin and the broader cryptocurrency market have been severely damaged by the bankruptcy of major crypto exchange FTX. After what happened, the confidence of investors has been shaken. 

As a result, he is likely to be under unprecedented scrutiny. The amount considered lost by FTX and Alameda Research is being taken into account. In addition, the possibility of contagion of the FTX crisis to other crypto currency exchanges is also among the talks. It is stated that stricter regulatory controls are necessary after the crisis.

Cryptocurrency Goes to G20! What will be discussed?

One of the main topics of the 17th G20 summit in Indonesia this year was the crypto market. After their last meeting, country leaders shared their thoughts on the rapidly growing Bitcoin and crypto space. The need for international rules was described as “critical” and the potential risks to “financial stability” should be mitigated.

Meanwhile, non-fungible tokens or NFTs have been under scrutiny for their environmental impact, a claim that NFT enthusiats refute.

G20 leaders, including US President Joe Biden, made speeches. Joe Biden made the following statements in his speech at the White House after the G20 summit:

“It is critical to raise public awareness of the risks, strengthen regulatory implications, and support a level playing field while reaping the benefits of innovation at the same time.”

Last month, the Financial Stability Board (FSB) submitted new requests. The FSB proposes rules that would subject crypto companies and markets to the same stringent rules that govern traditional finance. In addition, the leaders of the G20 conveyed the following about this step of the FSB:

We welcome the approach proposed by the FSB to establish a comprehensive international framework for the regulation of cryptocurrency activities, based on the principle of ‘same activity, same risk, same regulation’. 

The cryptocurrency ecosystem, including stablecoins, can be watched closely to mitigate potential risks to financial stability. It is also subject to robust regulation and supervision.

It turned out that after FTX’s bankruptcy, former CEO Sam Bankman-Fried lent client assets to sister company Alameda Research, which is owned by him. 

It is reported that he lost probably 8 billion dollars with all this. The vacuum created by FTX also hit other crypto companies linked to the stock market. Afterwards, companies struggled to distance themselves from the bankrupt stock market.

US Treasury secretary Janet Yellen said in a statement:

“We’ve seen it show that crypto markets need to be regulated more effectively. The same protections offered in traditional markets need to apply to the crypto industry as well.”

Professor Cristiano Bellavitis, an expert in crypto money and blockchain technology at Syracuse University, is among those who gave his opinion on the subject. Bellavitis says:

This is a wake-up call, not just a bump in the road or even the end of the road. The industry is huge financially, but its regulations are very limited. The same problems wouldn’t exist in the mainstream financial system.

With all this, Bellavitis predicts the regulation will help the technology evolve. Also, the professor believes that Bitcoin and the crypto industry will eventually get rid of the FTX problem. Bellavitis reminded that the FTX issue has reduced trust in the crypto industry. But he states that this industry and blockchain technology will continue to evolve:

“More regulation and clearer rules will only strengthen what this industry can do.”

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