G-7 Finance Ministers Discuss Crypto Regulation
• Representatives for the seven advanced economies signaled a commitment to following norms set by standard-setters FSB and IMF on crypto and central bank digital currencies.
• The Group of Seven (G-7) industrialized nations will make global crypto regulations tougher, with a focus on increasing business transparency and consumer protection.
• India, as the president of the G-20, has been pushing for globally coordinated crypto rules.
Group of 7 Commitment to Crypto Regulation
The Group of Seven (G-7) intergovernmental political forum has signaled its commitment to implementing the Financial Stability Board’s (FSB) forthcoming norms for regulating crypto assets and the International Monetary Fund’s (IMF) recommendations on central bank digital currencies.
The group’s finance ministers and central bank governors announced they had discussed crypto asset supervision at a Saturday meeting in Niigata, Japan ahead of the G-7 summit next week. Japanese Prime Minister Fumio Kishida, the summit’s host this year, has said G-7 leaders are set to state their joint support for tougher crypto rules.
Data Act Revision & Smart Contracts
Meantime, a revision of the European Union’s Data Act published by the bloc’s member states reveals that smart contracts will have to contain a kill switch. This means that if any element within it is incorrect or if it fails to execute as expected then it can be switched off without affecting other parts of its code.
Global Crypto Norms & Regulations
India, as the president of the G-20, has been pushing for globally coordinated crypto rules. In February, the group said forthcoming global crypto norms will be based on a new synthesis paper jointly produced by the IMF and the FSB. The G-7 has indicated it will follow standards set by the FSB: “We look forward to the FSB’s finalization of its high-level recommendations by July 2023,” their announcement read. “We commit to implementing effective regulatory and supervisory frameworks for cryptos assets.”
The G-7 is committed to following global standards laid out by bodies like IMF and FSB when it comes to regulating cryptocurrencies and central bank digital currencies in order to increase transparency between businesses consumers in an effort towards greater consumer protection worldwide.