Finance Ministers and Central Bank Governors from the globe’s twenty most powerful economies are “expected” to collaborate on creating a global registry of cryptocurrency exchanges when they meet at the G20 Conference in Fukuoka, Japan, in June, Nikkei Asian Review (NAR) reports.
G20 government personnel meeting June 8th and 9th are also expected to address, “challenges surrounding digital currencies, including money laundering and customer protection.”
G20 member nations/ regions are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States and the European Union.
So far, regulations pertaining to the cryptocurrency/digital tokens sector adopted by the various G20 nations are not necessarily aligned.
According to previous reporting in the Nikkei Asian Review (NAR), Japan, “….recogniz(ed) cryptocurrencies as a valid payment method,” in 2017, and by January 2018, became, “…world leader for Bitcoin trading, with yen-bitcoin transactions now accounting for 40% of the global total.”
But some, including Nomura Research Institute executive economist Takahide Kiuchi, have criticized Japan handling potentially problematic commerce that other regions are not.
According to Kiuchi, censure of virtual currency networks outside of Japan (China and India have completely banned them) has, “…led to moves to transfer investment money to Japan, where regulation is relatively slack.”
Japanese regulators have lately stepped up their scrutiny of crypto trading platforms and have conducted spot checks following a staggering $500 million USD hack on the Tokyo-based CoinCheck in late January 2018 and a $60 million USD hack on the Zaif exchange the following September.
Canadian securities regulators have also lately moved to consult on the creation of rules for the cryptocurrency sector following the loss of $180 million USD by Vancouver-based Quadriga CX.
Remaining Quadriga staff lost access to exchange funds when founder Gerald Cotten died suddenly in India and it was discovered he had not given anyone else password access to cryptocurrencies held in so-called “cold wallet” devices.
A previously reported by Crowdfund Insider, the Financial Stability Board (FSB), an international body of financial regulators, published a directory of cryptocurrency regulators in April. That list will be submitted at the G20 meeting in June.
The FSB also released a report in 2018 that concluded, “…crypto-assets do not pose a material risk to global financial stability at this time. However, vigilant monitoring is needed in light of the speed of market developments.”
In a note to editors regarding the October report, the FSB also outlines a number of risks that regulators should consider:
“…(C)rypto-assets also raise several broader policy issues, such as the need for consumer and investor protection; strong market integrity protocols; anti-money laundering and combating the financing of terrorism (AML/CFT) regulation and supervision, including implementation of international sanctions; regulatory measures to prevent tax evasion; the need to avoid circumvention of capital controls; and concerns relating to the facilitation of illegal securities offerings. These risks are the subject of work at national and international levels.”
The FSB has also reportedly advised:
“(That virtual asset service providers) should be licensed or registered and subject to monitoring to ensure compliance.”