The International Group of Seven (G7) is reportedly planning to request the Financial Action Task Force (FATF) to develop regulations for interpersonal transactions of crypto assets. The primary objective behind this move is to expand regulations not only between exchanges but also between individuals to combat the financing of terrorism (CFT) and anti-money laundering (AML).
According to a report by Nikkei, after making this request, FATF will consider specific regulations. This move comes after a long-standing challenge to improve the effectiveness of regulations on inter-personal transactions of cryptocurrencies. The G7 will hold a meeting of finance ministers and central bank governors from the 11th of November, during which they will request FATF to verify the issues and countermeasures.
Blockchain is both anonymous and highly transparent, and various analysis tools have been developed so far. This move has led to speculation that the introduction of such tools will eventually become a necessity.
The next G7 Summit is scheduled to take place in Hiroshima from the 19th of November, and the chair country will be Japan. The finance ministers and central bank governors meeting reported this time will be held ahead of the G7 summit.
In March of this year, it was reported that the G7 was expected to discuss tightening regulations on cryptocurrencies in preparation for a meeting of finance ministers and central bank governors.
According to Kyodo news sources, the G7 will issue a joint declaration on how to respond amid concerns over the potential risks posed by cryptocurrencies to the global financial system, with a particular focus on increasing transparency and consumer protection in the cryptocurrency business.
The potential impact of this move on the crypto market remains uncertain. However, the fact that the G7 countries are coming together to address these concerns and work towards a common goal is a significant development that could shape the future of the cryptocurrency industry.
Read more:
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