According to the report, the Japanese government has formed a liaison conference with various governmental organizations that will investigate the effect of Libra on the Japanese financial sector. The conference consists of the Financial Services Agency (FSA), Bank of Japan (BoJ) and the Ministry of Finance.
The conference has started its meetings from this week and will compile a report that will be presented by the Ministry of Finance before the G7 Finance Ministers Committee in France on 17th July. According to reports coming out of Japan, the committee is expected to make policies around the potential impacts of Libra on the Japanese financial sphere. The report is expected to address policies related to relevant regulations, tax, payment settlements and monetary policy.
It is also being reported that more government departments and experts are expected to join the team as the policy-making goes forward. Even though the team will present the first draft before the Finance Ministers meet on 17th July, it is expected that the team will continue working even after the conference.
Japan is one of the freest countries for cryptocurrency use in the world, dubbed as crypto heaven by many crypto enthusiasts. Japan has a very regulated crypto sector and a thriving trading community. It was one of the first countries to introduce regulations for cryptocurrency traders by revising the Payment Services Act. Launched in 2017, the regulation requires all cryptocurrency traders operating in the country to register with the Financial Services Agency (FSA). The regulations also recognized bitcoin and other cryptocurrencies as a commodity and means of payment.
France’s Task Force
Japan is not the first country to initiate a task force in response to Libra announcement. Last month, France also formulated a task force geared towards creating policies regarding Libra cryptocurrency. The task force is dubbed as the G7 task force as it will also contain representatives from other G7 states and is likely going to present its findings during the G7 conference in France. France currently holds the rotatory presidency of the G7 conference whereas the task force will work under the G7’s umbrella.
Reuters reported on 21st June that the task force is being headed by Bank of Europe’s board member Benoit Coeure. The Governor of France’s Central Bank Francois Villeroy de Galhau said in a statement about Libra:
We want to combine being open to innovation with firmness on regulation. This is in everyone’s interest.
Even though France is not against Facebook’s cryptocurrency; however, they are against Libra becoming a sovereign currency. The country is also making sure that Libra follows strict European anti-money laundering and consumer protection laws before the currency is launched. These concerns are also expected to be raised at the G7 summit and will also be the headlining problem at the Finance Ministers meet on 17th and 18th July.