Japan is scouting to include Cryptocurrencies under AML Rules worldwide to keep a check on money laundering activities and ensure consumer protection. The nation will request the world leaders at G20 meeting for a debate on stricter controls on Cryptocurrencies. Japan has taken a call amid the misuse of popular assets by the illegal groups for the money laundering activities.
The G20 summit will be held in Buenos Aires, Argentina next month. The cryptocurrency markets were hammered amid the news of regulatory tightening in the US and exchange vows in the last week. The proposed debate is likely to further hammer the cryptocurrency markets.
According to Japanese officials, the explosive growth of cryptocurrencies has prompted the discussion on the risks posed by the digital currencies. The debate also focuses on how the digital currencies will impact the financial system at the global level.
The world leaders will take a call on implementing the tight controls that obligate the cryptocurrency platforms to easily identify the customers. The new measures should permit access to the information so that international investigators will easily find the culprits. It prompts the cryptocurrency operators and users as well to reveal the identities.
Many countries such as the UK and Australia are in favor of extending the AML regulations on cryptocurrencies. Poland is also considering to bring the providers of Bitcoin under the anti-money laundering act of the government. It also invokes financial legislation against terrorism activities.
From the above, it is understood that every country is following the own set of rules for the digital currencies. A unique approach is necessary for all the nations across the world. It is welcomed by Japan whereas Europe and the US are cautious when it comes to cryptocurrencies. On the other hand, the countries such as China are totally opposite to the digital currencies.
The prospects of the financial leaders of G20 agreeing to the common approach on the regulation of cryptocurrencies is bleak. Some of the members of the G20 are of the view that imposing too many regulations will negatively affect the digital currency. The focus will be mainly on consumer protection and anti-money laundering activities.