G-7 Leaders to Draft Urgent Statement on Global Crypto Regulations

Leaders of G-7 nations issued a joint statement on global cryptocurrency regulations amid growing concerns over the asset class’ threats to global financial stability.

The leaders of Britain, Japan, Canada, Germany, France, the United States and the European Union consider it necessary to issue a joint statement following the collapse of FTX and several US banks.

G-7 meeting to focus on consumer protection

Leaders will support tighter regulations for customer protection and greater transparency for crypto businesses. They plan to push the rules ahead of a meeting of finance ministers and central bankers in Japan later this year.

The G-7 first indicated its intention in an announcement last May, and a document released last year proposed new rules following the collapse of the TerraUSD stablecoin in early May.

Of the seven most powerful countries, Japan has crypto regulations. The EU’s Markets-in-Crypto-Assets bill is expected to be debated on April 18, 2023.

The legislation will introduce laws surrounding disclosure by firms offering tokens to raise capital and introduce registration requirements, and will also introduce regulation around stablecoins, a crypto asset whose value is tied to a single fiat currency unit. Has happened.

In the United States there are several bills waiting to pass through Congress. This wait occurs after securities watchdogs have taken enforcement action on companies or products that they allege violated securities laws.

What crypto industry players see as a lack of commitment to creating clear guidelines for crypto businesses has seen many flee the US to Singapore, the UK, Dubai and the European Union.

Leaders ask FASB to work on travel rule

The global nature of the G-7 leaders’ meeting means they can impose rules on the international movement of crypto. Leaders work closely with the Financial Accounting Standards Board to address the stability risks associated with crypto assets.

It urged the FASB last year to “pursue the rapid development and implementation of consistent and comprehensive regulation of crypto-asset issuers and service providers, to the same standards as other standards, to keep crypto-assets stable, financial system.”

Also, the leaders called for more action around so-called travel rules for crypto assets.

Recently, delegates at the Financial Action Task Force plenary in Paris decided to implement new standards around the travel rule. Apparently, these rules enforce “transmission of originator and beneficiary information” for crypto.

These tougher enforcement standards followed the Virtual Asset Regulation introduced in 2019. At that time, this law suggested the need to collect data about the source and destination of virtual asset transfers.

In a recent interview with BeInCrypto, Notabene COO Alice Nawfal praised the EU’s approach. She said that the EU had displayed the most flexibility when drafting the compliance aspect of the travel rule.

“They were open and moved quickly,” she said.

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