Representatives from the G-7, consisting of the United States, United Kingdom, Canada, France, Germany, Italy, and Japan, as well as the European Union and other nations, discussed cryptocurrency regulation during a meeting held in Niigata, Japan, ahead of G-7's summit this week. Japanese Prime Minister Fumio Kishida has expressed the G-7's joint support for stricter crypto regulations.

India, as president of the G-20, has been leading the movement to establish globally coordinated regulations concerning cryptocurrencies. As a result, the G-7 has pledged to adhere to the standards of the Financial Stability Board (FSB), an international body which seeks to ensure financial stability. Along with the FSB’s guidelines, the G-7 has also agreed to put into action effective regulations and supervision of all activities and markets involving cryptocurrencies, such as stablecoins. These mandates are to be in align with the recommendations and guidance of the FSB and other international standard setting-bodies.

Furthermore, the G-7 will back the Financial Action Task Force’s (FATF) attempts to hasten the global application of its travel rule. This rule requires the exchange of information between financial organizations regarding fund transfers in an effort to combat money laundering. The G-7 is expecting the FATF to release a progress report regarding this matter in light of the increasing risk of illegal activity.

Additionally, the G-7 has considered the International Monetary Fund’s anticipated recommendations for central bank digital currencies (CBDCs) which are due out in 2021. These nations are also offering assistance to emerging countries looking to issue CBDCs.

All in all, the G-7 has committed to upholding and enforcing consistent and secure cryptocurrency supervision in line with the FSB and other international standards. This step towards regulation will aid in reducing the risks associated with crypto assets and assist in eliminating money laundering. G-7 members, with the help of the FATF, are efficiently addressing the illicit activities of cryptocurrency. In addition, by using the IMF’s recommendations, the G-7 aims to help emerging countries issue their own CBDCs.

This combination of stringent, global cryptocurrency regulations and the launch of CBDCs will lead to stability, transparency and trust in digital currency and movements around the world.



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