Representatives of seven advanced economies expressed their commitments to comply with the standards set by the FSB and IMF for cryptocurrencies and central bank digital currencies.

The G7 intergovernmental political forum has committed to implementing the Financial Stability Board's (FSB) upcoming standards for regulating digital asset markets and the International Monetary Fund's (IMF) recommendations on central bank digital currencies (CBDCs). Finance ministers and central bank governors said they discussed crypto asset oversight at a meeting in Niigata, Japan, ahead of next week's G7 summit.

Japanese Prime Minister Fumio Kishida, the host of this year’s summit, said G7 leaders showed common support for a tougher approach to the cryptocurrency sector.

India, as chair of the G20, has been pushing for global cryptocurrency regulatory frameworks. In February, the group said the upcoming global standards would be based on a document prepared by the IMF and FSB.

The G7 stressed that they will adhere to the standards set by the FSB: “We expect the FSB to finalize its recommendations by July 2023, and commit to implementing effective regulatory frameworks and supervision of crypto-asset market activities and stablecoin arrangements in line with the FSB recommendations, standards and guidance established by the SSB (standards-setting body).”

The finance ministers said the G7 also supports efforts by the Financial Action Task Force (FATF) to accelerate global implementation, which requires sharing of information on money transfers between financial institutions.

The global money laundering watchdog is to publish a report on progress on implementing the rule of law – something the G7 is looking for “in the face of growing threats from illicit activities”.

The G7 has said it will support developing countries in issuing CBDCs, and will consider the IMF's recommendation on CBDCs to be released later this year.

In addition to the G7 bloc of the US, UK, Canada, France, Germany, Italy and Japan, representatives from the European Union, Australia, India and several other jurisdictions were invited to attend this year's meeting.

PCB Assembly