The world’s most powerful economies hope the move will seal a loophole money launderers have exploited since the inception of bitcoin and other cryptocurrencies.
The plans will be unveiled when central bankers and finance ministers from G20 economies meet in Fukuoka, Japan next month. Crypto-related challenges such as customer protection and money laundering will be discussed at the summit.
Japan set to school g20 on cryptocurrency regulations
Global financial system monitor, the Financial Stability Board (FSB), had last month submitted to G20 finance ministers and central bankers a ‘directory of the regulatory and supervisory mandates of authorities in FSB member jurisdictions’ with regards to crypto assets. In Fukuoka, the FSB will also report to the G20 on the work done to address risks posed by cryptocurrencies. The directory was published last month and is part of ongoing efforts on crypto assets.
— The FSB (@FinStbBoard) April 5, 2019
The choice of Japan as a host of the summit is apt considering that the Far East country has some of the most progressive cryptocurrency regulations among G20 economies and even around the world. Japan may also offer a blueprint on how to operate a crypto exchange registry having had one for years now.
And while the country has suffered numerous cryptocurrency exchange attacks where hundreds of millions of dollars have been lost, how Japan has responded to the setbacks offers valuable lessons to the bloc.
The reward of embracing crypto – stellar adoption rates!
Another G20 country that’s relatively progressive with regards to handling cryptocurrencies is South Korea. Unsurprisingly, the national currencies of Japan and South Korea are the second and third most traded for bitcoin globally. This is despite the two countries being the third-largest and 11th-largest by nominal GDP.
This contrasts sharply with other countries in the G20 bloc such as China where the cryptocurrency sector faces severe restrictions. For instance, crypto exchanges are banned though owning and using bitcoin by individuals is not prohibited.
India is also another example of a member of the G20 bloc where authorities have taken an anti-crypto stance. For starters, the Reserve Bank of India prohibits the financial institutions it regulates from offering their services to crypto exchanges. This has seen some crypto exchanges move abroad or close shop altogether.