G20: Efforts On Governance Issues In Decentralized Financial Systems - "BGIN" - New gGobal Network

Overview
A Decentralized financial system underpinned by blockchain could attain full P2P (Peer to Peer) financial transactions without intermediaries. While such systems can offer a variety of opportunities and benefits, they could also undermine the ability to enforce existing regulations.
As stated in the G20 Osaka Leaders' Declaration under Japan's presidency (June, 2019), a consensus has been reached on the issue of governance of decentralized financial systems based on blockchain technology and the importance of strengthening dialogue with a wide range of stakeholders, including regulatory authorities and engineers.

Based on this belief, on March 10, 2020, a special online panel discussion has been held at Blockchain Global Governance Conference [BG2C], which is a new global conference on blockchain and cohosted by JFSA and Nikkei, Inc.

In the panel discussion, Shin'ichiro Matsuo (Research Professor, Georgetown University) made public the launch of a new global network named "Blockchain Governance Initiative Network" (BGIN - pronounced 'BEGIN').
 
JFSA will contribute to the activities of BGIN as one of the stakeholders by leveraging our experience in dialogues and collaborations with various blockchain stakeholders.

• Launch of a new global network for blockchain "Blockchain Governance Initiative Network" [BGIN]

Outline of BGIN

 BGIN aims at providing an open and neutral sphere for all blockchain stakeholders to deepen common understanding, address issues they face in order to attain sustainable development of the blockchain community. Their goals are tentatively set out as noted below.
 
 1. Creating an open, global and neutral platform for multi-stakeholder dialogue
 2. Developing a common language and understandings among stakeholders with diverse perspectives
 3. Building academic anchors through continuous provision of trustable documents and codes based on an open source-style approach

• For further infromation, please visit BGIN Official Website and register for its mailing list. All BGIN documents are on its GitHub repository for public discussion.

Latest Updates on BGIN

• BGIN's first meeting (Block #1) on  Nov 23-25 (November 11, 2020 updated)

• Official press release for the establishment of BGIN (March 10, 2020) [Documents published by BGIN] (BGIN Official Website)

Road to BGIN

[1] FIN/SUM 2018

September 25-28, 2018 (JFSA Symposium: September 27)

• "FIN/SUM 2018"
• FIN/SUM × REG/SUM 2018 official website
  • Video [Japanese]
• Summary of the “FinTech Summit 2018”

[2] Blockchain Round-Table

March 27 and 28, 2019

• JFSA's Blockchain Round-Table 2019 High Level Summary [Multilateral Joint Research project]

＊ JFSA has convened BCRT using the outputs of JFSA's "Multilateral Joint Research Project [MJRP]" (see below).

[3] G20 Finance Ministers and Central Bank Governors Meeting (Fukuoka: June 9, 2019)

• Communiqué,G20 Finance Ministers and Central bank Governors Meeting, Fukuoka.(Jun.8-9,2019) (Ministry of Finance website)
• G20 High-level Seminar on Financial Innovation "Our Future in the Digital Age"
  • Opening Remarks by Deputy Prime Minister Taro Aso
  • Introductory Remarks by Commissioner Toshihide Endo
• Release of videos of "G20 High-level Seminar on Financial Innovation" and "G20/OECD Seminar on Corporate Governance"

[4] FIN/SUM 2019

September 3-6, 2019 (JFSA Symposium: September 5)

• "FIN/SUM 2019"
• FIN/SUM 2019 official website
  • Video

[5] Blockchain Global Governance Conference [BG2C]

(Some sessions were held on March 10, 2020; others are to be decided.)

• Blockchain Global Governance Conference[BG2C]
• BG2C official website
• BG2C Special Online Panel Discussion
  • Video
  • Introductory Remarks by Commissioner Toshihide Endo
• Blockchain Global Governance Conference, FIN/SUM Blockchain & Business
  • Video
  • Opening Remarks by Deputy Prime Minister ASO Taro [Video(YouTube)]
  • Closing Remarks -Is Satoshi’s dream still relevant today?- by Commissioner HIMINO Ryozo [Video(YouTube)]

    *In addition, some JFSA officials participated in the following blockchain stakeholder dialogues.

• Scaling Bitcoin 2019 (September 11-12 2019)
  • Official Site
• Devcon 5 (October 8-11 2019)
  • Official Site
  • Video
• Convergence - The Global Blockchain Congress 2019 (November 11-13 2019)
  • Official Site
  • Video
• Fintech Association, 10th Capital Markets Subcommittee (October 20 2020)
  • Presentation Material: "Governance in a Decentralized Financial System"

Multilateral Joint Research Project

JFSA has been conducting blockchain Multilateral Joint Research Project since 2017. The research aims to gain in-depth knowledge about underlying technological risks and provides the basis of agenda items for Blockchain Round-Table for the purpose of developing policy implication. The outcomes from the research will be one of the contributions by JFSA for further dialogue at BGIN. 

[Research papers]

• Research on Technological Risks in Financial Transactions Using Blockchain [March 2018]
• Research on privacy and traceability of emerging blockchain-based financial transactions [March 2019]
• A Study on Governance for Decentralized Finance Systems Using Blockchain Technologies [May 2020]
  •  Excecutive Summary

* The views and opinions expressed in the papers do not necessarily reflect the official policy or position of JFSA

Contact Details

Fintech and Innovation Office, Financial Services Agency

Tel: +81-(0)3-3506-6000