Japan to Guide G20 Members on Crypto Regulations

The country is one of the most crypto friendly jurisdictions on the globe.

Japan is set to share its crypto regulation guidelines with the finance ministers and central bank governors of its peer countries in the upcoming G20 summit.

According to an April 22 report by the local media Sankeibiz, the country’s regulator has already prepared a handbook that outlines measures to prevent the outflow of virtual currencies.

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The G20 summit of 2019 is scheduled to take place in the Japanese city of Osaka on June 28-29. Finance ministers and central bank governors of 19 countries and the European Union will join to discuss various economic issues and thus promoting international financial stability.

G20 members like China and India are hostile towards the nascent digital currency industry whereas most of the other members are struggling to impose a proper set of regulations on the sector. Japan, on the other hand, has encouraged the cryptocurrencies from the beginning and even gave them legal status.

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The regulators of the country, however, came under pressure in 2018, after an attack on Coincheck that resulted in the theft NEM tokens worth around $530 million. After rigorous scrutiny of security and business aspects of all the exchanges operating within the country, Japan’s Financial Services Authority (FSA) has mandated all the exchanges in the country to get an operating license.

In the manual, Japan addresses many key aspects for crypto regulations including “necessary measures to protect customer assets,” “measures against cyber attacks,” and “ways of providing information to customers.”

An old topic at G20 summit

This is not the first time a G20 member will raise the issues of digital currency, as last year the topic was discussed addressing the concerns like tax evasion, money laundering, and terror financing using crypto.

The panel also discussed crypto regulatory concerns in 2017, when France led the discussion.

Meanwhile, Japan is recently planning 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.

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