According to a report from a local Japanese media house-Kyodo, G20 member countries are seeking to delve into regulating Cryptocurrencies. The members are set to introduce Anti-Money Laundering and Counter-Terrorism policies to govern Cryptocurrency transactions.
The discussions are set to kick off in between June 8th and 9th in Fukuoka, Japan where the next G20 summit will be convened. The Premier of Japan, Shinzo Abe, who is also the chair of the group will head the summit of the member heads of state.
According to the globalist data, the organization accounts for 85% of the global GDP at $63 trillion dollars including the EU. However, the Statista data shows that the G20 has a 43.49% share of the global GDP which is set to surge to 46.55% by 2023.
These data prove that the group has an influential power over most industries. And their policies can influence the direction that the Crypto market takes.
Goal Of The Summit
The event will focus on enacting policies that can combat successfully the growing challenge of money laundering through the use of Cryptocurrencies. The summit will also aim to establish a framework of ensuring that terrorism funding via Cryptocurrencies is quashed.
Notable policymakers comprising of member states’ central bank governors, and finance secretaries/ministers, will be the key contributors in the summit. Their discussion report will then be used as a basis of orienting the heads of state about the importance of establishing AML and counter-terrorism frameworks for Digital Tokens.
Removing The Anonymity In Crypto-Based Platforms
Blockchain platforms guarantee anonymity features as a way of safeguarding users’ privacy as some DLT platforms are not permissioned.
According to the Kyodo report, the G20 countries are expected to reach a consensus that will ensure that Crypto-payment platforms conduct strict KYC to establish the identity of each customer to outlaw anonymity. This will help to keep transactions transparent and also act as a deterrent to terrorism financiers and money launderers who have been accused of turning to Cryptos to sustain their underground businesses.
G20 Has Been Calling For Crypto Regulation For Long
According to a Cointelegraph report, the G20 has been particularly proactive in setting the pace for Cryptocurrency regulation in a bid to tame the wanton misuse of Cryptos against the goal of Satoshi Nakomoto: He had envisioned a global economy based on Cryptocurrencies.
In December, the G20 had proposed to nations and economic blocks to deploy a taxation system for cross-border electronic payments that include Cryptocurrencies. The matter came up in the 2018 Buenos Aires summit and members committed themselves to hold an in-depth discussion on the issue in 2019.
Introducing Cryptos In The Mainstream World
Should the initiative by the G20 to introduce AML and anti-terrorism financing rule succeed, Cryptocurrencies may be ushered in mainstream industries such as finance, banking, insurance, international trade, etc. This is because of the immense benefits that Cryptos proffer by operating in decentralized, secure, immutable, global, and transparent Blockchain platforms that will be reinforced by the policies.