G7 Nations to Follow Crypto, CBDC Norms Set by FSB & IMF

Paigambar Mohan Raj
Source: Bitcoin.com

The G7 nations have signaled that they will follow the norms set by Financial Stability Board (FSB) and International Monetary Fund (IMF) regarding crypto and CBDCs (Central Bank Digital Currency). The G7 group is comprised of the U.S., U.K., France, Japan, Germany, Italy, and Canada. At a conference held on Saturday in Niigata, Japan, the group’s finance ministers and central bank governors discussed crypto oversight. The meeting comes just ahead of the G7 meeting scheduled for next week.

This year’s meeting will take place in Japan. The Japanese Prime Minister Fumio Kishida, said that the G-7 leaders will announce their support for stricter crypto regulations. India has been recently advocating for internationally unified crypto rules as well.

How will the G7 set crypto regulations?

The organization stated in February that the next international crypto standards will be based on a fresh synthesis document created in collaboration with the IMF and the FSB. Additionally, the G7 has said that it will adhere to the FSB crypto and CBDC requirements. Moreover, according to the announcement, the FSB’s finalization of its high-level recommendations should be ready by July 2023.

Furthermore, the Financial Action Task Force’s (FATF) initiatives to hasten the adoption of its travel rule globally are also supported by the G-7. According to the finance ministers, the law requires financial institutions to share information on fund transactions. Moreover, a report on the execution of the travel rules is slated for publication by the international money-laundering watchdog. The G-7 will consider the IMF’s proposals on CBDCs, which are expected to be released later this year. The G-7 has already stated that it will assist developing countries in issuing CBDCs.

The U.S. is one of the major economies of the world that has yet to unveil some sort of regulatory oversight in the crypto space. Nonetheless, many industry proponents expect the U.S. to unveil its own crypto rulebook sometime later this year. However, there is no confirmation of the same.