The G20 may adopt cryptocurrency regulation principles currently in force in Japan. At the next G20 Summit in June, Japan will share its experience in the field of cryptocurrency regulation with the Central Bank governors and financial regulators of the other G20 member countries.
According to the local press, the “set” of regulatory measures is universal and could harmoniously fit into the legal framework of any other G20 country.
Everyone knows that Japan is one of the most advanced countries in terms of cryptocurrency regulations. Back in April 2017, digital currencies were recognized as legal means of payment, which laid the foundation for the country’s further development in the role of a “cryptocurrency paradise”. Now, such a soft policy can migrate to the “Big Twenty”.
However, the Japanese regulation can not be defined as unrestricted and permissive. According to Sankeibiz newspaper, regulatory standards contain mechanisms for combating money laundering and terrorism financing, which means that indentity verification is mandatory when making FIAT to cryptocurrency (and vice versa) transactions. On the other hand, the rules are protecting cryptocurrency investors and their financial assets, as well as providing desirable conditions for new businesses to develop.
To date, the G20 countries have already tried to introduce rather rigid regulatory measures, and there is still no unanimous opinion on this issue. To improve this situation, Japan intends to offer G20 leaders not just a set of rules “on paper”, but norms tested in a highly developed economy.
The cryptocurrency refulations in Japan used to be even softer, until the industry was shaken by two major hacks of large crypto exchanges – Coincheck and Zaif . After that, the authorities tightened the requirements for all platforms that interact with third-party digital assets. It is difficult to disagree with these legal requirements: if an exchange wants to work with the clients’ money, it must provide the highest level of protection and security.
The Japanese regulation remains one of the most crypto-friendly and advanced legal frameworks in the world. Let’s hope that the G20 countries will study the experience of this progressive country and follow its example.
Fittingly given Bitcoin’s creator’s pseudonymous use of the Japanese name Satoshi Nakamoto, East Asia is the region of the world at the forefront of cryptocurrency adoption and development.