G7 Urges Global Adoption Of ‘Travel Rule’ For Crypto Assets

The G7 committee recently gathered in Niigata, Japan, to address a variety of subjects, including the global financial consequences for central bank digital currencies (CBDCs) and the regulations managing the transfer of cryptocurrency assets.

statement summarizing the discussions, the committee reiterated its backing for the development of Central Bank Digital Currencies (CBDCs). However, it emphasized the need for further research to ensure that CBDCs are built on principles of transparency, adherence to the rule of law, robust economic governance, cybersecurity, and data protection.

The G7 committee expressed excitement for the publication of the first set of deliverables by the 2023 World Bank Group and IMF Annual Meetings, which are scheduled to take place in Marrakesh, Morocco, on October 15. The communique applauded the International Monetary Fund’s (IMF) work on creating a “CBDC Handbook” as “welcome” and stated that it looked forward to its publication.

The divisive “Travel Rule,” which mandates that any financial institution processing cryptocurrency transactions worth more than $3,000 disclose the sender’s name, address, and account information, was also debated by committee members. 

In the released communique, the committee stated its unequivocal stance, expressing support for the initiatives led by the Financial Action Task Force (FATF) to accelerate the global implementation of FATF Standards related to virtual assets. This includes endorsing the “travel rule” and addressing emerging risks associated with DeFi arrangements and peer-to-peer transactions.

The G7 committee consists of representatives from Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, and another member not specifically listed, the European Union.

The annual G7 summit, which is set to take place in Hiroshima from May 19 to 21, will be preceded by the Niigata meeting.

According to the Financial Times, there is uncertainty regarding the attendance of U.S. President Joe Biden at the summit due to the ongoing deadlock in Congress caused by the impending debt ceiling impasse. However, the publication reports that the United States is seeking support from its wealthy nation counterparts to intensify economic pressure on China during the summit.

It’s significant to note that while Russia had 18 mentions in the communique from the Niigata conference, China received no mentions at all. Ukraine received 17 mentions.

Bank of England Publishes Work On Central Bank Cryptocurrencies

Different financial institutions and banks worldwide are starting to think about issuing cryptocurrencies. These digital assets are known as central bank digital currencies – or CBDCs – which would allow for the institutions to reduce operational costs, transaction times, and increase efficiency. Bank of England Paper on CBDCs The Staff…

May 23, 2018

In "Crypto News"

G7 Aims To Tighten Crypto Regulations With Collaborative Efforts

Kyoto news agency stated that the upcoming G7 meeting could result in a push for more laws on cryptocurrency worldwide from the seven largest democracies. Officials in Kyoto have announced that a joint plan to improve transparency in cryptocurrencies, safeguard consumer rights, and manage potential worldwide financial risks will be…

March 27, 2023

In "Crypto News"

VISA Works on Interoperability Solution for CBDCs

The giant payment network VISA announced that it is currently working on a new interoperability solution for central bank digital currencies (CBDCs). According to a recent blog post published by the VISA global CBDC product lead Catherine Gu, the goal is to create a “universal adapter” for companies, governments and…

October 1, 2021

In "Breaking"