Japan will urge its G20 counterparts at a meeting next week to beef up efforts in order to prevent cryptocurrencies from being used for money laundering, a government official with direct knowledge of the matter said.
Central bankers and finance ministers from the G20, which is the group of twenty major economies around the world, are scheduled to meet on March 19 and March 20 in Buenos Aires.
The news is suspected to send certain warnings to the cryptocurrency market, which have been already moving unsteadily amidst the regulatory warnings in the US.
The cryptocurrencies have been seeing outpouring investment, thus, Japanese officials feel that it would be safe to discuss the threats tied to this boom in cryptocurrencies at the international level and fix the prevailing loopholes. In particular, they want to enforce world wide measures that require crypto related platforms to identify the users. The access to transparency in the user identification in turn will lead to lesser suspicious activities.
The Anti-Money Laundering (AML) regulations have become an integral part in many other countries too like UK and Australia which also includes Europe’s push for global Bitcoin regulation. Poland has also decided to bring the bitcoin regulations under government’s AML regulations.
Because of each country having its own set of methodologies and rules to keep an eye on the cryptocurrency exchange, there is a lack of flow of direction and regulation. While most of the countries are adopting measures to avoid frauds through cryptocurrencies, China shows outright opposition to such regulation schemes.
According to a report by Reuters, one of the officials saying that:
“The prospects for the G20 finance leaders to agree on specific global rules and mention them in a joint communique are low. The general feeling among the G20 members is that applying too stringent regulations won’t be good.”
“Discussions will focus on anti-money laundering steps and consumer protection, rather than how cryptocurrency trading could affect the banking system.”
With countries also in conflict over what kind of measures to adopt, the entire scenario on the regulations on cryptocurrency is yet to be observed.
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