Japan Will Present a Universal Solution for Cryptocurrency Regulation at the G20 Summit

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Japan is preparing to share its experience in the field of cryptocurrency regulation with the participants of the G20 summit, which will be held in June.

According to local media, Japanese regulators have a solution for cryptocurrency regulation, which can be offered to G20 countries. According to the local news publication on Sankeibiz, Japanese regulators have created a manual “that each [G20] country can use for regulations, such as measures to prevent the outflow of virtual currency.”

In December last year, the G20 countries have already called for the creation of a “taxation system for cross-border electronic payment services”, as well as regulation to combat money laundering. Then it was noted that the G-20 member countries, which then gathered in Argentina, will consider the issue at a meeting this year when the summit will be held in Japan.

“Since it is difficult to establish common rules, we [Japan] decided to put them in a guidebook, to have the know-how in a form that suits each country, and to raise the level of regulation,” the publication notes.

According to the report, the guide discusses key regulatory areas, such as “Necessary measures to protect customer assets,” “Measures against cyber attacks,” and “Ways of providing information to customers.”

Japan relies on its own experience gained after last year two major cryptocurrency exchanges were hacked – Coincheck in January and Zaif in September. After the break-ins, the country’s main financial regulator, the Financial Services Agency (FSA), strengthened its supervision of cryptocurrency exchanges, including conducting inspections at company offices and issuing orders to make changes in business operations.

In the middle of this month, Japan’s FSA announced that it plans to tighten security requirements for cryptocurrency exchanges over cold wallets. At the moment, 19 cryptocurrency exchanges are registered in Japan, although some of them have not yet begun official activities. Enhanced supervision of cryptocurrency exchanges in Japan was also reported in February.

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