It looks like Global Regulators are trying to push the agenda for "vigilantly" monitoring risks of crypto currencies like Bitcoin and Ethereum, even though a few months back at the G20 Summit they mentioned that crypto currencies pose no major risk for financial stability at this time. I think that they are slowly starting to realize that they have no sovereign rule over crypto currencies and regulating it is proving much more difficult than they imagined. One country's policies on crypto laws may be different than other countries. This can cause confusion to investors, or it can encourage investors to pack up their bags and move to more crypto friendly countries.
Regulators are also concerned with ICOs of new coins. They are trying to claim that they want to "protect" financial investors from scammers. But if you think about it...if an investor makes a good return on an ICO anonymously, it is very difficult or impossible to collect taxes on those earnings unless this anonymous investor volunteers to report their income for tax purposes. If you notice now, many ICOs require KYC. This is one method to help track and identify who is purchasing. This is not to protect the consumer, this is to protect the regulators so they can take their taxes from your money. You take all the risks, and when you lose, the government only lets you write off a fraction of your losses on your taxes ($3000 here in US), but if you gain profits, they will tax you until infinity.
The Financial Stability Board (FSB) is coordinating with the Group of 20 Economies (G20) to set the framework on how cryptos can interact with other financial systems. They claim that they want to "spot any financial stability risks early enough to take action." At this time it seems like most of the countries in the G20 want to tread lightly, but there are also countries like France, who want more radical action now to regulate cryptos. The Basel Committee wants an "initial stocktake" of banks' exposures to crypto assets. Below is the link to learn more...
Well there you have it. What do you guys think? Is this good regulation or is it too early in the game to have global regulators interfering with cryptos? And do you think that it will ever be possible to truly regulate cryptos or will there be ways around it? Please comment and thanks for reading.