Global regulations to curb money laundering using virtual currencies may be developed in June during this years’ meeting of G20 member countries. The meeting has been slated to be held between June 8 and June 9.
According to Kyodo, a local news outlet, central bank governors will join finance ministers in formulating the global anti-money laundering regulations which will also encompass regulations to curb terrorism financing using cryptocurrencies. The news outlet added that on April 4, all G20 member countries expressed their willingness to come to a consensus during the two-day meeting.
G20 Regulations To Introduce Transparency
Part of the things the new regulations will focus on include requiring parties involved in virtual currency transactions to disclose their identity. This is meant to bring about transparency.
This is not the first time the G20 is calling for stricter cryptocurrency regulations. Towards the end of last year, the group of central banks governors and finance ministers advocated for a taxation framework to be imposed on cross-border “electronic payment services.”
They also called for a regulatory framework to be developed to avoid virtual currencies being used to launder money and finance terrorism. During the last G20 meeting which was held in Argentina, the G20 member states observed that the development of a global cryptocurrency anti-money laundering and terrorist financing regulations will be among the major subjects of discussion in this years’ meeting in Japan.
The issue of developing virtual currency AML regulations that would cut across geographical boundaries comes after Revolut, a cryptocurrency banking application based in the U.K, was implicated in a money laundering related case. The firm’s CEO played down the allegations.
The choice of this years’ G20 meeting venue, Fukuoka, Japan, is significant. Fukuoka is a leading Japanese city for startups. The city has a mix of local and international human resource who take advantage of the city as a National Special Zone for Global Startups.
According to the city’s mayor, Soichiro Takashima:
“In the financial sector as well, the waves of innovation are getting surging and the world is keeping a close watch on future developments, lending a great significance to Fukuoka’s hosting of the Finance Ministers and Central Bank Governors Meeting.”