Regulators Debate Cryptocurrency Legislation Ahead of G20 Summit

Published on by Coindesk | Published on

Cryptocurrency regulation will take a step forward during the upcoming V20 Summit where country representatives will assess the new course of legal action proposed by the international Financial Action Task Force.

FATF will release proposals on June 21 in hopes of setting new international standards for crypto businesses.

FATF standards for blockchain and cryptocurrency have set high expectations among legislators.

"The VASP industry recognizes the importance of clear regulation in preventing financial crime and mitigating corruption," Takemoto said.

The event, which will run parallel to G20 Summit on June 28 and 29 in Osaka, Japan, takes a new dimension by being held at the only country to have a legal framework for cryptocurrencies.

The latest examples given by Japanese regulators include measures to tighten restrictions on speculative trade and new obligations for exchanges, such as keeping a cryptocurrency protection fund.

While regulators agree on the need to control cryptocurrency businesses, too much regulation could backfire.

According Roger Wilkins, FTAF ex-president and former secretary Australian Department of the Attorney General, a common concern is that new regulations could push the public out of controlled platforms.

"What we are hearing from industry is that the new rules may have the opposite effect to which they were intended, effectively forcing crypto transactions off the controlled platforms, which are currently one of the best avenues we have in gaining visibility over financial crime," Wilkins said.

Blockchain association representatives from China, South Korea, United Kingdom, Singapore and Australia will also be present at the event to review the new standard.