Representatives from the seven advanced economies showed they are dedicated to following the rules set by organizations like the FSB and IMF regarding cryptocurrencies and digital currencies issued by central banks.
The G-7, a group of seven countries that work together on global issues, has shown that it is dedicated to using the rules that the Financial Stability Board and the International Monetary Fund will create for controlling cryptocurrencies and digital currencies issued by central banks.
The finance ministers and central bank governors of the G-7 group had a meeting in Niigata, Japan on Saturday to talk about supervising crypto assets. The meeting happened before the upcoming G-7 summit. The Prime Minister of Japan, Fumio Kishida, who is hosting the summit this year, mentioned that the G-7 leaders are planning to express their collective support for stricter rules regarding cryptocurrencies.
India, as the president of the G-20, has been advocating for global cooperation in creating rules for cryptocurrencies. In February, the G-20 stated that upcoming global norms for cryptocurrencies will be developed based on a new document created together by the IMF and the FSB. The G-7 has shown its intention to adhere to the guidelines established by the FSB.
The announcement stated that we are excited for the FSB to finalize its important suggestions by July 2023. We promise to put in place rules and systems that effectively regulate and supervise activities and markets related to cryptocurrencies, as well as arrangements involving stablecoins. These rules will be in line with the recommendations and standards set by the FSB, as well as the guidance provided by standard-setting bodies (SSBs).
The G-7 finance ministers expressed their support for the Financial Action Task Force (FATF) in its efforts to speed up the worldwide adoption of the travel rule. This rule requires financial institutions to share information about fund transfers. The G-7 eagerly awaits the progress report from the global organization responsible for combating money laundering, as it will help address the increasing risks posed by illegal activities.
The G-7, known for its commitment to assisting developing nations in issuing central bank digital currencies (CBDCs), will rely on the recommendations provided by the IMF. These recommendations, expected to be released later this year, will guide the G-7’s approach towards CBDCs.
The G-7 consists of the United States, United Kingdom, Canada, France, Germany, Italy, and Japan. Additionally, representatives from the European Union, Australia, India, and other places have been invited to participate this year.
This information is for general knowledge only and should not be considered as advice for investing or making financial decisions.