Adopt a joint statement
The meeting of finance ministers and central bank governors of the seven major countries (G7) held in Niigata from the 11th ended on the 13th with the adoption of a joint statement. In the joint statement, they expressed their intention to continue policy deliberations to deal with financial digitization. He emphasized the importance of the role played by Central Bank Digital Currencies (CBDCs) in the global payment system and his intention to encourage international regulation and oversight of crypto-assets (virtual currencies).
The G7 Niigata Finance Ministers and Central Bank Governors Meeting adopted a joint statement and closed after three days.
Click here for details of the joint statement ▼https://t.co/V1Vgq4IB4I
The photo is from the meeting of the Chairperson. pic.twitter.com/Tfytu0R6lw
— Ministry of Finance (@MOF_Japan) May 13, 2023
The statement argued that the CBDC could play a major role in a “trusted, stable and transparent global payment system.” In it, it referred to the “Public Policy Principles for Retail CBDCs” agreed in October 2021, stating that “Any CBDC should, among other things, be committed to transparency, the rule of law, sound economic governance, cybersecurity and data protection. should be based,” he reconfirmed.
In addition, he “welcomes” the work of compiling the “CBDC Handbook,” which the International Monetary Fund (IMF) is working on in collaboration with relevant international organizations and national authorities, “We look forward to the first set of deliverables,” which will be unveiled before the annual meeting, he said.
connection:G7 to study support measures for developing countries to introduce CBDC
Development of regulation and monitoring system
The statement emphasizes the critical importance of “effective monitoring, regulation and oversight” to “address financial stability and prudential risks posed by cryptocurrency activities and markets while supporting responsible innovation.” . According to the recommendations of the Financial Stability Board (FSB) to be announced by July this year, it announced that it would introduce a regulatory and supervisory system.
We will implement an effective regulatory and supervisory framework for crypto-asset activities and markets and stablecoins, consistent with FSB recommendations and standards and guidance established by SSBs. commit to
It also encouraged the FSB and SSBs to promote the implementation of its recommendations “consistently, effectively, in a timely manner” and “globally.”
In February, the FSB released a report on the risks decentralized finance (DeFi) poses to the stability of the financial system. It shows the policy to deal with DeFi vulnerabilities. The statement said it supports the FSB and SSBs in carrying out “follow-up work” on decentralized finance (DeFi) and cryptocurrency intermediaries.
connection:G20 Financial Stability Board presents policies to deal with risks posed by DeFi
Supporting FATF Initiatives
In the statement, the travel rule was implemented in light of the “increasing threats from illicit activities, especially by state actors”, such as “theft of crypto assets for proliferation finance, ransomware attacks, terrorist financing and sanctions evasion”. expressed support for initiatives by the Financial Action Task Force (FATF), including
Travel rules are rules on international wire transfers to prevent money laundering, etc. advocated by FATF (Financial Action Task Force). Crypto Asset Service Providers (VASPs) are required to collect and exchange information on senders and recipients during transactions and to ensure the accuracy of that information. International Know Your Customer (KYC) rules will be applied to cryptocurrency transfers between eligible VASPs.
According to the Nikkei Shimbun, since 2017, Japan has accounted for about 30% of the total damage caused by North Korea’s virtual currency hacks, and it has become clear that the world’s largest amount of 98 billion yen was illegally acquired.
connection:Japan, the amount of virtual currency hacked by North Korea is the world’s highest amount equivalent to 98 billion yen = Nikkei
Furthermore, the G7 also supports FATF’s work on “risks arising from DeFi and person-to-person transactions (P2P transactions).” For some time now, it has been an issue of how much the effectiveness of regulations can be improved for interpersonal transactions of virtual currencies, but in response to the request from the G7, the FATF will consider specific regulations.
What is FATF
An abbreviation of “Financial Action Task Force”, an international organization that supervises AML and CFT. Although the rules and recommendations it presents are not legally binding, they have great influence because they conduct examinations of member countries and disclose the list of non-cooperating countries in AML and CFT.
connection:G7 to request FATF to review regulations on private transactions of virtual currencies = Nikkei