Japan, the country which promotes itself to be as a crypto-friendly economy, has urged G20 counterparts to consider a debate on global cryptocurrency regulation to combat the use of digital currencies in money laundering during the next summit meet.
Finance Ministers and Central Bank governors of G20 economies are scheduled to meet in Buenos Aires on March 19-20, and one of the agenda on the table will be cryptocurrencies. The chances of arriving at a specific global rule are very minimal as every country is following a different approach to address the issues related to regulations of cryptocurrencies.
An official with knowledge on the development said: “Discussions will focus on anti-money laundering steps and consumer protection, rather than how cryptocurrency trading could affect the banking system,” further added: “The general feeling among the G20 members is that applying too stringent regulations won’t be good.”
The Paris based Financial Action Task Force (FATF), a 37-nation group formed by G-7 economies to fight illicit financial transactions will also report its finding to the G20 on way to keep cryptocurrencies from being used a potential tool to launder money.
Japan’s urgency to have a specific global cryptocurrency regulation can be understood, as recently it has suffered large hacking incidences of crypto exchanges affecting millions of crypto investors globally. Japan has been pro-active in making cryptocurrencies an essential part of its economy and is the first country to adopt a national system to oversee cryptocurrency trading. And, misuse of the system will have a large scale implication on its economy and its financial stability.
Earlier reported, France and Germany have also planned joint proposal on the subject of regulating cryptocurrency market.