April 23, 2019, | AtoZ Markets – As part of the G20 summit which will be held in Japan in June 2019, the Land of the Rising Sun has developed a crypto regulations manual that will be delivered to G20 leaders and international financial chiefs.
G20 summit will be dedicated to crypto regulations
During the G20 summit, Finance ministers and central bank governors of 19 countries and the European Union will discuss various economic issues including crypto regulation.
The G20 summit, which will take place in Osaka, could become one of the most important meetings to develop international guidelines for crypto, and Japan intends to make the process as smooth as possible.
As a host of both the G20 Summit and G20 Ministerial Meetings on June 28-29, Japan has the right to set much of the agenda for the talks. Thus, Tokyo is hoping to illustrate the need to implement the following key points related to the crypto regulations :
- Systems that protect customer assets
- International security protocols
- Systems that provide customers with information – particularly in the event of a hack
G20 members have a different attitude toward crypto
Certain G20 members like China and India remain quite suspicious towards crypto industry while most of the G20 members are struggling to impose a proper set of regulations on the sector.
The G20 countries had already debated cryptocurrency regulations at previous meetings and had tentatively agreed on the importance of international crypto tax measures, but has so far refrained from taking decisive action.
Japan in its turn has encouraged the cryptocurrencies from the beginning and even gave them legal status. Last year, G20 promised to support the guidelines set provided by the Financial Action Task Force (FATF), which stated: “At a minimum, virtual asset service providers should be required to be licensed or registered in the jurisdiction where they are created, or … where they have their place of business. ”
Japan G20 crypto regulation manual in a brief
Since there is no single law base for the crypto regulation, Tokyo emphasizes the importance of the digital assets control standardization, which should appear sooner than later. In the past two years, the G20 has pushed for the creation of standard crypto regulations and the upcoming G20 summit in Japan can be considered as the culmination of ongoing efforts.
Tokyo has developed a guide to regulatory proposals that will be distributed to all participants in the G20 summit in order to reach a quick consensus on the legislation process.
The manual covers a number of topics, including systems that can protect consumer assets, international standards of security protocols and systems that can inform customers about activities, for example, when a stock exchange or other crypto platform becomes the target of hackers.
The G20 summit group has expressed its hope to complete the summit with new rules that may be of great importance for creating a stable international crypto ecosystem.
Crypto regulation in Japan
Japan has one of the most strict rules for the crypto industry. The regulations were implemented after a series of high-profile hacking exchanges, but the country now has one of the best systems in place.
According to the Japanese crypto regulations, all exchanges must submit a license application to the Financial Services Agency, and the Japanese Association of Virtual Currency Exchanges (JVCEA) has the legal authority to control the exchanges to ensure their operation in accordance with the laws and the organization’s own standards.
Tokyo plans to tighten the crypto exchanges’ oversight on cold wallets to mitigate risks of any thefts. It has also renewed rules for crypto margin trading and set the standards as per the existing forex trading industry.
Please share your thoughts with us in the comment box below.