The main task Japanese representatives at the G20 will be tasked with is to push for ta adoption of global rules to govern digital currencies. The summit will be held next week, and it will see finance ministers and central bankers come together. Other countries are also expected to raise their views on cryptocurrencies.
Japan will see to urge G20 members to look into cryptocurrencies and come up with some common ways to regulate the market. The country was the first to adopt digital currencies and oversees its trading on registered exchanges. The new push is aimed at implementing common international guidelines for the fast-growing market.
One Japanese official stated that Japan would request G20 members to put more efforts and even resources in preventing illegal activities like money laundering. Japan’s Chief Cabinet Secretary Yoshihide Suga has also stated that he expects very active participation in the Summit about digital currencies and their impact on the global economy.
The discussions are expected to be mainly centered on money laundering, consumer protection and now how they are likely to affect the banking sector. According to Suga: ‘The general feeling among most G20 members is that applying too hard regulations will not be good for the market.”
This year’s meeting will be held at the Argentinian capital on March 19th and 20th. Other nationals that will be expected to raise similar issues are German and France as they have already written letters urging other ministers in G20 to discuss the consequences of cryptocurrencies like Bitcoin. The officials had stressed that there should be a regulatory approach and stated that the two countries would jointly propose regulations.
Russian minister has also stated that he expects a serious discussion about digital currencies. According to him, some G20 members regard digital currencies the same as fiat money. He, however, expects that the summit will confirm its position on the same.
Regulate without hurting the market
Japans main worry is that some countries are having weak regulation when it comes to digital currencies something which is likely to promote illicit activities. Japan has already tightened its rules after the hack on Coincheck which lost $500 million. Japan has already tabled more than 700 ways of possible money laundering.
Japanese officials believe that the rules should protect consumers and prevent illegal activities without hurting the innovation in this growing sector. The G20 countries comprise more than 80% of the world’s trade and gross product. The coming meeting will demonstrate whether the countries are ready for a common approach towards cryptocurrency regulation.