Regulators Discuss Cryptocurrency Legislation Ahead of G20 Summit
The cryptocurrency regulation debate is expected to be at the center of the upcoming G20 summit where representatives from various countries will evaluate the new legal action course that has been proposed by the International Financial Action Task Force. The FATF is expected to release the proposals for new international standards governing cryptocurrency business on June 21.
The summit has the support of legislators and it is expected to have on board Virtual Asset Service Providers (VASP) as well as national blockchain associations. This summit will run concurrently with the G20 summit that is scheduled between June 28 and June 29 in Osaka, Japan. It seems almost like a step forward that the summit is held in Japan, which is currently the only country with a legal framework for regulating cryptocurrencies.
The FATF standards for cryptocurrency have high hopes amongst legislators, and the main focus is the impact of crypto on lasting financial security challenges. Japanese Congressman Naokazu Takemoto addressed the subject, stating that the VASP industry sees the significance of having clear regulation to prevent financial crimes as well as mitigate issues to do with corruption. Some of the latest regulations include measures to tighten the restrictions regarding predictive trade as well as new regulations for exchanges like having a cryptocurrency protection fund.
Although there is a consensus from regulators regarding having regulations to control the industry, too much of it might backfire. Roger Wilkins, former FTAF president, warns that the new regulations could potentially push out the public from controlled platforms. Wilkins said that there is a possibility of the rules having a different effect than the original intention, which could potentially force cryptocurrency transactions from the controlled platforms.
Countries like South Korea, China, Singapore, Australia, and the United Kingdom are expected to have blockchain association representatives at the G20 summit to review the standard. The blockchain industry is waiting to see whether the international body will oppress them.
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