Japan to Guide G20 Members on Crypto Regulations

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.

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 Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term from the beginning and even gave them legal status.

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 Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term trading industry.