The issue of the G7 leaders formulating on crypto regulation had been a topic of media discussion, but the recent developments have confirmed it.
G7 leaders representing their respective countries met in Japan last week to discuss various issues. They finally deliberated on crypto regulation as well and jointly expressed their support for it. The meeting in Niigata also had central bank digital currencies (CBDCs) as an agenda, with crypto regulations regarding the transfer of digital assets.
Other topics discussed included a regulation that required crypto firms to disclose transactions worth over $3000 to be disclosed to authorities while sharing addresses and other details of the sender. The G7 leaders supported the rule.
Crypto regulation has also gradually gained prominence in other parts of the world. Recently, the European Council also gave its permission to new rules for similar crypto transfer rules, where crypto firms would have to share transactional information with authorities. The European Council claimed the rule was to prevent money laundering and counter-terrorism. The European Council also proposed a new body for the same purpose.
On May 13, the G7 leaders comprising the finance ministers and heads of the central banks of the respective nations came out with a summary of their discussions, which said, “We commit to implementing effective regulatory and supervisory frameworks for crypto-asset activities and markets as well as stablecoin arrangements, which are consistent with the FSB’s recommendations and standards and guidance established by SSBs.”
FSB and SSB here refer to the Financial Stability Board and standard-setting bodies.