https://news.bitcoin.com/japan-g20-cryptocurrency-regulation/Japan is preparing to share its experience regarding cryptocurrency regulation with finance ministers and central bank governors from other G20 countries at the upcoming summit which it will host in June. According to local media, Japanese regulators have a solution for crypto regulation to offer the G20 countries.
According to local news outlet Sankeibiz, Japanese regulators have created a handbook “that each [G20] country can use for regulations, such as measures to prevent the outflow of virtual currency.”
“International rules are being developed to prevent money laundering and terrorist financing, with virtual currency restrictions in place,” the news outlet described Monday. “On the other hand, there are no rules in terms of the protection of customer assets and the soundness of the market, so it is the first time that certain ideas are shared internationally,”
It remains to be seen whether the other G20 countries are interested though.
Sounds like Japan's trying to break Bitcoin. This is why I can't trust a government to regulate anything that goes beyond their sphere of influence; they totally muck it up.
There isn't any way to "prevent" the outflow of Bitcoin without some kind of massive intervention, and a hard fork, which would somehow limit transactions to their geographical coordinates. There isn't any way to implement something like that in a way that the community will accept. Trying to add consumer protection can easily be done through expanded escrow services, it's not like a government has to step in and operate Bitcoin wallets like they're bank accounts.
Nope, they cannot "change" the Bitcoin protocol or hardfork the technology to suite their needs. They will use proper regulation to "force" people to use Bitcoin in a way that KYC/AML is required by law. If someone use Bitcoin without these requirements, they will be prosecuted.
A lot of criminals will still be able to bypass capital control mechanisms, so they will just hunt them down and make examples of them. So the message to the G20 countries will be to "outlaw" Bitcoin use without KYC/AML regulations.
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