If there is one aspect about cryptocurrencies that irritates regulators and government officials more than any other, it is the anonymity afforded the criminal element of our society by the nature of blockchain distributed ledger systems. At its next meeting on June 8 and 9 in Fukuoka, Japan, the G20 central bank governors and finance ministers will deliberate, among other things, the lack of transparency in crypto transactions in the crypto world. The intent will be to focus “on establishing a framework to combat crypto-enabled money laundering and terrorism financing”.
This news comes by way of a report by a local news outlet in Japan by the name of Kyodo. The report reveals that the group will not only discuss various “anti-anonymity” options, but also come to some agreement on actual regulations to move forward in their respective markets. Per Kyodo:
They will, reportedly, be coming up with decisions on new regulations and how to implement them. The forum will be used to address anti-anonymity and how to create stricter identification guidelines that will enable better transparency in the crypto space.
The G20 group has also been reviewing the tax implications of digital assets, but a report on this topic is not to be forthcoming until sometime next year. For the time being, the meeting attendees are following up on discussions that were held at its last meeting in Argentina last December and continue to follow guidelines established by the Financial Action Task Force (FATF). Per its assertion at that time:
We will regulate crypto-assets for anti-money laundering and countering the financing of terrorism in line with FATF standards and we will consider other responses as needed.
The crypto community has been on notice that something has to be done to “to establish stricter identification of individuals transacting in crypto at the moment of transaction, to keep asset flow transparent,” if there is ever to be greater acceptance by regulatory establishments across the globe. Crypto zealots have vehemently objected, stating that the privacy of the crypto world must be “sacrosanct”, as if religious fervor would win over in the long run. Most observers, however, concede that, if cryptos are ever to mature to the next level and gain widespread acceptance, the anonymity issue must be dealt with. If not, there will be an uphill battle, lasting as many as 15 years by some estimates.
One reporter summed up this issue quite succinctly:
Although some in the cryptocurrency community may not want them, global crypto regulations are coming. Some countries have already established their own frameworks and, in an effort to create a truly uniform system, the G20 has been steadily working on regulations that would be adopted by all member nations to foster a better, more robust crypto environment. Now, the group has announced that it will most likely have some guidelines in place by this June, only two months away.
It is also significant that these discussions will be held in Japan, a current hotbed for crypto trading among its citizens. National pride will also be on the line, as evidenced by these remarks from Soichiro Takashima, the mayor of Fukuoka:
In the financial sector as well, the waves of innovation are surging and the world is keeping a close watch on future developments, lending great significance to Fukuoka’s hosting of the Finance Ministers and Central Bank Governors Meeting. My fellow citizens and I are determined to make this meeting a success.