It is expected that during the summit of industrialized and emerging countries (G20) this year, a special meeting will be held to discuss crypto-regulation
The annual G20 summit will be held soon in Osaka, Japan, where economic topics of great relevance to member countries will be discussed. On this occasion, the cryptographic community is very attentive because it is planned that, this time, there will be another meeting where the regulatory processes for cryptocurrencies would be discussed, as well as a legal framework that will help member countries to adopt cryptocurrencies. The purpose of the meeting is for the organization to define the best course of action on legal matters regarding cryptoactives.
The meeting called V20, Virtual Asset Service Provider’s (VASPS’s) will be an alternate meeting that will take place officially during the G20 summit; it is scheduled to be held during June 28th and 29th. During this great event, the national associations linked to blockchain technology will have the opportunity to meet with representatives of other countries of the organization. In the summit the members will evaluate a clear and legal proposal for the cryptographic industry, developed by the Working Group and the Financial Action Task Force (FATF).
Regarding this idea, FATF launched, last June 21st, a set of proposals that will help achieve an efficient regulation for the cryptocurrency industry. Among the proposals, certain standards stand out for blockchain technology and cryptocurrencies. This awakes expectations among lawmakers around the world.
The points that have attracted more attention are about financial security using blockchain technology. In this way, Naokazu Takemoto, who is a Japanese congressman, said that they recognize this technology could prevent crime and combat corruption. “The VASP industry recognizes the importance of clear regulation to prevent financial crime and mitigate corruption”, he commented.
It is undeniable that the industry needs a legal environment that supports its operations, helps protect users and promotes the evolution of financial processes. On the other hand, it is a fact that it could also be negative for business with cryptoactives; especially if these regulations suffocate transactions or prevent transnational movements with cryptoactives.
On this matter, Roger Wilkins, Former President of FATF, explained that excessive regulation could prevent users from using these platforms, destroying the industry. “What we are hearing from the industry is that the new rules may have the opposite effect to what was intended, effectively enforcing the cryptographic transactions of the controlled platforms, which are currently one of the best ways we have to gain visibility on financial crime”, he concluded.
The lawmakers who will be in charge of discussing these measures agree with the fact that it is absolutely necessary to adapt the rules to the changes that represent this technology, and take advantage of this moment to regulate adequately the cryptocurrencies’ ecosystem.
In some days, the crypto community will know the results of the G20 meeting, just when cryptoactives like Libra, which would be launched by Facebook, are been criticized and when Russia and other countries are preparing their own regulations for cryptoactives in order to try to protect their users.
By María Rodríguez
