Does Japan Have the Key to G20 Crypto Regulation?

Wilfred Michael 

Wilfred Michael

News reporter

23 April 2019,
15:08
Does Japan Have the Key to G20 Crypto Regulation?

Between June 28-29, G20 member nations will meet for the G20 Summit and G20 Ministerial Meetings in Osaka, Japan.

Even though some of the attending governments, which prominently includes India have struggled to accept that the cryptocurrency industry is here to stay, it is very likely that the new space will get some airtime at the global meeting.

The fact that the gathering is taking place in Japan, a country that has regulated the cryptocurrency industry to a significant extent, serve as a hint that a crypto discussion at the G20 meeting would happen. However, further evidence suggests that it is not just a hint but a certainty that G20 member nations will discuss how to regulate the emerging industry at the upcoming meeting

According to a local news source, Sankei Biz, Japan's representatives at this year's conference will submit a proposed “manual” or toolkit that it believes can help G20 member nations regulate the crypto industry in their respective jurisdictions.

Precisely, the "manual" will reveal how these countries can prevent the outflow of virtual currency and still create a safe and fair trading environment.

The report admits that while existing regulations focus on the prevention of money laundering and terrorism financing, authorities do not pay enough attention to what measures need to be taken to protect investors and promote a sound market.

In this regard, the "manual" which represents the first time that such an idea is shared internationally aims to provide:

  • The necessary measures to protect customer assets

  • The measures against cyber attacks

  • The ways of providing information to customers amongst other things

Japan’s proposed manual no doubt reflects the experience it had gathered from overseeing the industry at a time when hackers breached two cryptocurrency exchanges, namely Coincheck and Zaif, albeit the country is eyeing the introduction of new rules for cold wallets held by crypto exchanges.

Additionally, the country’s status as host of their year’s G20 meeting means it has the right to present the matter of crypto regulations to other countries to help them improve oversight of the industry.

The big question now is whether the G20 member countries would accept Japan’s “manual” or continue in chaos — some states outrightly ban cryptocurrencies, others have shady regulations while only a few like Japan has gained control of the new industry.

Well, given that the G20 already approved anti-money laundering and terrorism financing laws for the cryptocurrency industry, it would not be wrong to conclude that Japan’s “manual” will get a hearing and maybe even an implementation.

June is no longer far away, so we’ll wait to see by then whether Japan can finally hand the key that unlocks a unified set of crypto regulations across the G20 countries.

 

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