The awakening of global regulation? Developed economies such as G7 and other 15 countries jointly develop cryptocurrency transaction tracking system

According to Japanese media reports yesterday, about 15 countries, including the Group of Seven (G7), will develop a system to track cryptocurrency transactions to prevent illegal use of cryptocurrencies.

These countries include Australia, Singapore, the United States, the United Kingdom, Germany, France, Japan, Italy and Canada.

Cryptocurrency

The Financial Action Task Force (FATF) plans to develop detailed measures by 2020.

The report points out that the new system aims to collect and distribute personal data on cryptocurrency transactions to prevent funds from being used for illegal activities such as money laundering and terrorist financing.

Although some jurisdictions around the world have not yet established a regulatory framework for cryptocurrencies, it is expected that this new international program will help to develop appropriate legal measures on a global scale.

According to reports, this response system will be implemented after the 2020 policy is introduced. The report states that once adopted, the private sector will manage the system.

In June 2019, FATF released a risk management guide for virtual asset and virtual asset service providers. In this document, the organization presented a series of regulatory recommendations to its 37 member states, including monitoring and reporting suspicious transactions from local cryptocurrency service providers.

As a result of this document, the top four cryptocurrency exchanges in South Korea, including Bithumb, Upbit, Coinone and Korbit, faced stricter regulation when they updated their bank accounts at the end of last month.

On July 18, the G7 finance ministers said they were concerned that if the cryptocurrency, such as Facebook's stable currency, Libra, was not strictly regulated, it could disrupt the global financial system.