Japan is reportedly planning to use a G20 meeting next week to call for combined regulatory efforts to combat the use of cryptocurrencies in money laundering.
The news comes via a Reuters report citing a government official with knowledge of the situation. However, the likelihood of the G20 finance chiefs uniting on new international rules are not high, the official said, as different countries approach regulation of cryptocurrencies in a variety of ways.
"The general feeling among the G20 members is that applying too stringent regulations won’t be good," an official was quoted as saying.
The G20 meeting will take place in Buenos Aires from March 19–20.
If Japan makes the call for cooperative action on cryptocurrencies, the nation will likely not be alone.
On Feb. 9, senior officials from France and Germany also called for the G20 group to discuss combined action on cryptocurrencies.
In a letter to the Argentinian government – which currently holds the presidency of the G20 – French finance minister Bruno Le Maire, German finance minister Peter Altmaier, and the heads of their respective central banks, expressed concerns about the risk of cryptocurrencies for investors.
A week earlier, U.S. Treasury Secretary Steven Mnuchin also indicated he would raise the subject of cryptocurrency regulation during an upcoming G20 summit. Like Japan, he raised the issue of cryptocurrency use in money laundering and other illicit activities.
G20 flag image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.