Japan Calls on G20 For Common Rules on Cryptocurrency
After the Coincheck hack, the need for unified standards arose as crypto security proved to require higher vigilance.
Japan will call on leaders of the influential G20 to adopt a common rule on cryptocurrencies, especially in combating money laundering, Reuters reported citing an unnamed government source.
However, the official quickly shot down the likelihood finance leaders of the G20 will issue a joint communiqué on common digital currency rules as each of its member-countries have a varying approach to the issue.
Reuters quoted the official as saying:
“Discussions will focus on anti-money laundering steps and consumer protection, rather than how cryptocurrency trading could affect the banking system. The general feeling among the G20 members is that applying too stringent regulations won’t be good.”
The finance ministers and governors of central banks of the Group of 20, an organization of the top economies in the world, are scheduled to meet in Buenos Aires in Argentina on March 19-20, with virtual currencies on top their agenda.
During the meeting, the 37-nation Financial Action Task Force (FATF), will submit their findings to G20 members about preventing the nascent technology from being exploited by criminals to launder money. The FATF is a Paris-based organization founded by the G7 economies to fight illegal finance.
FATF wants improved understanding of crypto-related money laundering risks
Last month, the FATF called on global market regulators to improve their understanding of money laundering risks as digital currencies gain more popularity across the globe.
During the meeting, South Korea’s Financial Services Commission (FSC) presented the nation’s anti-money laundering policies for cryptocurrency trading as well as its efforts to curb the illegal transfer money using digital currencies.
France, Germany wants cryptocurrencies in G20 agenda
Earlier, central bank governors and finance ministers of Germany and France have submitted an official request to include virtual money in the G20 summit discussion, touching on the wider implications of the digital assets on a global scale.
French finance minister Bruno le Maire and his German counterpart Peter Altmaier, and the central bank governors of France (Francois Villeroy de Galhau) and Germany (Jens Weidmann) wrote a letter to Argentine Finance Minister to include virtual money on the G20 agenda in next week’s meeting. The letter reads:
“We believe there may be new opportunities arising from the tokens and the technologies behind them. However, tokens could pose substantial risks for investors and can be vulnerable to financial crime without appropriate measures. In the longer run, potential risks in the field of financial stability may emerge as well.”