The crypto industry is an intricate one ever since its inception in the world. One of those features which make the industry quite complicated for investors is the little or no regulations guiding the industry.
While some investors oppose the idea of regulating the crypto industry due to the many benefits they derive from its decentralized and anonymous nature, many governments believe that the crypto industry has accelerated many financial crimes in the economic market and as such, there is a need for the proper regulation of the industry to curb this menace.
In line with this, the G20 is believed to have plans of formulating more strict crypto regulations to keep the industry in check.
However, these regulations will surely affect the activities of investors in some cryptocurrencies.
Who Are The G20 And How Can They Regulate Crypto?
The G20 or the group of twenty is an international body of world governments comprising nineteen countries and the European Union (EU). The G20 was formed in the year 1999 to address some global issues climate change mitigation, international financial stability and sustainable development.
Since its inception, G20 has held a summit at least once a year and each member nation is represented by the President or finance minister, while the EU is represented by the European Commission and European Central Bank.
It declared itself the primary forum for international financial and economic cooperation which places so much power on the organization in terms of global financial regulation.
This means that the G20 reserves the power to regulate the activities of the crypto market and how cryptocurrencies are used in the world.
It is not clear yet if this union intends to take this action but speculations have it that such a thing may happen soon.
So, should the G20 regulate the crypto market and activities, and what are the cryptocurrencies that may be affected?
Top 10 Cryptocurrencies To Be Affected By The G20’s Potential Regulations
Bitcoin is the king of all other cryptocurrencies in existence today.
Bitcoin has grown from a value of less than $1 in the first year of its launch to more than a $65,000 asset in November 2021.
Even though Bitcoin has been plagued with some inconsistencies in price, it is still one of the major cryptocurrencies which have been massively adopted.
The potential regulations on crypto by the G20 may further affect Bitcoin.
Dogecoin is popularly known as a meme coin. It gained entry into the market in 2018 and has enjoyed much hype from major crypto enthusiasts like Elon Musk. His public interest in Dogecoin also influenced many crypto investors in considering Dogecoin as a long-term investment coin.
However, the regulations of the G20 will quite overwhelm the love of investors for Dogecoin and they will surely comply with the regulations.
3. Shiba Inu:
Recently, Shiba Inu took a major leap when it entered the metaverse, thereby attracting investors to It.
However, investors don’t consider Shiba Inu to be good crypto for long-term investment due to its volatile nature. Further crypto regulations from the G20 will affect the value of Shiba Inu.
Ethereum is the next big next thing next to Bitcoin in terms of value. Bitcoin and Ethereum are always given almost the same level of relevance on the mainstream level due to their vast use cases and value.
The Ethereum blockchain is home to so many crypto projects and this inspired the launch of the Etheruem Merge to lessen the scalability and interoperability problem on the network.
However, the Merge would not stop the regulations by the G20.
5. Terra Classic:
Terra Classic is a successor of the Terra Luna cryptocurrency which crashed and destroyed the hopes of many crypto investors in May 2022.
It also incited the downfall of the whole market during this time and investors were uncertain of where to invest.
Also, given that the founder of Terra Classic is under the surveillance of Interpol for several allegations against him, further crypto regulations by the G20 will push investors to bail on Terra Classic.
The Solana decentralized network gained massive recognition when it launched and was considered a major rival to the Ethereum network.
However, due to some problematic outages on the network, its significance and dominance are beginning to fade.
There’s no certainty that Solana will survive any further crypto regulations from G20.
Apecoin is a growing cryptocurrency in the market majorly used to trade NFTs.
One can say that Apecoin has not gained strong traction in the crypto market and it should face more crypto regulation, then it would barely survive it.
Additionally, investors are avoiding the token due to the increasing scams recorded in the NFT market.
Ripple (XRP) has been known to be one of the top ten cryptocurrencies for a long time.
The token has many advantages attached to it which include buying, selling and trading on different crypto exchanges and transfer of assets on the Ripple network.
The major idea behind Ripple was to attract more users to the crypto market during improving globalization.
Being one of the top cryptocurrencies in the market, It will be affected by the G20 potential regulation.
Decentraland (MANA) is a decentralised and immersive metaverse platform built on the Ethereum blockchain.
The Decentraland platform is a combination of many features like gaming, entertainment and e-commerce which attracts people and businesses to invest in it.
Even though the future of this crypto looks bright, any crypto regulation may affect its performance
Stellar may soon lose its dominance in the crypto market due to its volatile nature.
This crypto was built for storing and moving money as an open network. Hence, people can create, send and trade digital money on the network.
However, if there should be a crypto regulation by the G20, then Stellar will be affected like other cryptocurrencies.
As the crypto industry continues to sink deep in its decentralized activities, creating room for numerous financial crimes, there is a need for stricter regulation of the industry.
Given the extent of the power which the G20 possess on financial and economic regulation, there’s a high probability that it will enforce some regulations to monitor the crypto industry.
Disclaimer: The information in this article is solely the author’s opinion and not financial or investment advice. Kindly make your research before taking any decision.