The leaders of the G20 countries, meeting over the weekend in Buenos Aires, Argentina, crafted a joint document that called for the creation of an international system that would tax cross-border transactions made by electronic payment services. They also called for the regulation of digital currencies in order to prevent their use in money laundering. The document states that, under current laws, companies that do not have a physical location in a country cannot be taxed in that country, even if they are conducting business in that country. Cryptocurrency payment services usually do not have physical locations in most of the countries in which they operate. G20 member countries are expected to develop this idea more between now and next year, which is when Japan will become the president of the group. At that time, they will again consider the idea. Each country will be responsible for creating their own proposal, and in 2020 a final version of the regulations will be enacted. It has been long expected that the G20 would take up the subject of digital currencies at their meeting. This summer, Bruno Le Maire — who is the finance minister of France — called on the G20 to publically debate digital currencies during their meeting in Buenos Aires. Le Maire said at the time that world leaders needed to specifically discuss Bitcoin, because of its inherent speculation risk. He further said that France, along with other G20 members, needed to examine the issue at the meeting with an eye on placing regulations on the popular cryptocurrency. Then, in October, Jeremy Allaire — who is the CEO of a Goldman Sachs-backed cryptocurrency investment app named Circle — called on the G20 to normalize the digital currency industry. By this he meant that coordinated regulation of cryptocurrencies was needed. Specifically, Allaire believes that world governments need to be more involved with initial coin offerings (ICOs), know-your-customer policies and the prevention of market manipulation of digital currencies.
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