Cryptocurrencies have been a hot topic when it comes to regulation for a number of years as governments across the world have struggled in this area.
This is mainly because crypto currencies are complicated digital assets that can skirt the law in various ways.
Governments have been seeking ways to regulate and control digital currencies for a number of years but have not had a lot of success.
Japan is at the forefront of these regulatory changes and the country is poised to share its blueprint with the world in an upcoming G20 summit.
According to sources, Japanese regulators have already prepared for the summit by having a handbook made that outlines the country’s crypto regulations, specifically to measures to prevent the outflow of virtual currencies. The summit is scheduled to take place between June 28-29 in Osaka. This conference is where members of the G20 will be sending their finance ministers and central bank governors to discuss pressing economic issues and measures that need to be taken to ensure financial stability in the world economy.
There are several G20 members that do not like the idea of digital currencies flourishing in their jurisdictions. Most notable of these are China and India who have come down hard on their crypto markets. Most of the other members in the G20 have also been struggling to properly regulate them. Japan is one of the few countries that have been pushing cryptocurrency interests while also implementing regulations to properly control them.
Japanese regulators have been scaling up their efforts since the 2018 Coincheck hack. The breach resulted in $530 million in NEM tokens being stolen and forced a review of the country’s regulations.
The result was stricter rules being enforced by Japan’s Financial Services Authority (FSA). Their biggest change was forcing all exchanges operating in Japan to obtain an operating license from the FSA and to comply stricter security guidelines.
The handbook presents some of the measures implemented by the FSA while also focusing on several regulations that ensured protection of customer assets and preventing cyber-attacks. The regulations also increased the transparency of dealings so that customers would always have the required information.
Japan Will Continue To Work On Regulations
Cryptocurrency issues have been raised before by G20 members during the summit. Last year’s summit had member nations discussing how to address issues of money laundering, tax evasion, and terror financing that involved cryptocurrencies.
While crypto regulation will be discussed during the upcoming summit, Japan will also be tightening oversight on crypto exchanges. The government will be looking into crypto margin trading so that standards can be set, similar to its existing forex trading industry.