Cryptocurrency Regulations, the Main Topic in G20 Summit

Last Modified:12 May 2020 11:54:05
Cryptocurrency Regulations, the Main Topic in G20 Summit

In the upcoming G20 Summit in June, Japan will provide central banks directors and member states its experience in regulating the field of cryptocurrencies. Japan will host the G20 Summit in the city of Osaka. The hosting member state of this summit has the right to determine the topic of this group’s sessions. Japan is one of the most advanced countries in the field of cryptocurrencies and currently many companies in this field are active in this country. This country legally recognized making payments using cryptocurrencies in April 2017. Japan has prepared the basis for developing the industry of Blockchain and cryptocurrency by setting regulations and consistent surveillance. In the experts’ opinion, Japan’ experience in setting regulations in the field of cryptocurrencies can be used in many G20 counties. Japan will prepare and publish its experiences in the form of a guide book for the G20 Summit. This guide book will address important points in this field, specifically the regulations about preserving users’ assets.

In recent years, cyber-attacks to the crypto exchange centers of Coincheck and Zaif have made the surveilling organizations in this country more aware and careful regarding the security of crypto industry in a way that FSA (Financial Services Agency) launched a committee to set regulations in order to increase the security of crypto exchange centers in Japan. FSA is the official regulating body of the government of Japan to ensure the stability of financial markets in this country. FSA has forced active companies in this industry to report suspicious transactions. Transactions that do not comply with the defined frameworks of FSA should be immediately reported to this organization. Also, according to these rules, users are not allowed to create multiple accounts. Japan hopes that this summit would be able to help considerably in implementing security protocols for trades, a system for protecting customers’ assets and a mechanism for raising the awareness of users about incidents such as the occurring of cyber-attacks.

According to a news published last year in the Japanese media, the member states of G20 have agreed to prepare a shared system of taxation for buying and selling cryptocurrencies. Taxation in this field has always had some problems that is exploited by some profiteers. For instance, Japan has not been able to tax the existing companies in this field that are active in this country but do not have an office there.

According to experts, the entrance of global assets to the crypto and Blockchain industry needs clear regulations more than anything, but this matter is faced with many challenges. The lack of clear explanations, tokenization of assets and competition between countries are among the factors that further complicate the regulation process. Therefore, given the international nature of these challenges, they cannot be solved without international cooperation.