by • The G7 committee recently met in Niigata, Japan to discuss CBDCs and crypto regulation, with an eye toward quickly implementing the “Travel Rule” for crypto assets.
• The communique described the International Monetary Fund’s (IMF) work in developing a “CBDC Handbook” as “welcome.”
• The committee also discussed the controversial “Travel Rule” requiring any financial institution processing cryptocurrency transactions greater than $3,000 to disclose sender’s information.
G7 Discusses Crypto Regulation
The Group of 7 members recently met in Japan where they discussed central bank digital currencies (CBDCs) and crypto regulation, with an eye towards quickly implementing the “Travel Rule” for crypto assets. A communique summarizing the discussions expressed support for developing CBDCs but noted that further investigation was needed to ensure it is grounded in transparency, rule of law, sound economic governance, cyber security and data protection.
IMF Developing a “CBDC Handbook”
The communique welcomed the International Monetary Fund’s (IMF) work in developing a “CBDC Handbook” and said that the G7 committee were looking forward to its first set of deliverables by 2023 World Bank Group and IMF Annual Meetings which will take place on October 15th in Marrakesh, Morocco.
“Travel Rule” Discussed
The committee also discussed the controversial “Travel Rule” which requires any financial institution processing cryptocurrency transactions greater than $3,000 to disclose sender’s information including name, address and account details. The commitee expressed their support for initiatives by FATF standards on virtual assets including this particular rule.
Data Protection Standards
In addition to this rule they also discussed establishing certain data protection standards when transferring digital assets between different countries or jurisdictions This includes ensuring customer privacy while still allowing law enforcement agencies access to necessary information for investigations.
G7 Moving Forward With Global Crypto Regulations
Overall it appears that the G7 are pushing forward with global regulations involving cryptocurrencies and other digital assets in order to protect consumers and promote innovation within this space. They recognize that further investigation is needed but have made clear their commitment to start implementing these measures as soon as possible
