Officials from the Bank of Japan have cautioned the G7 countries that the clock is ticking on a unified framework for the regulation of the virtual currency, cryptocurrencies.
Reuters reports that a top Bank of Japan (BOJ) official has cautioned the G7 countries that time is running out to develop a uniform framework for regulating cryptocurrencies.
It’s time for G7 officials to speed up efforts to reduce the danger of sanctions evasion via the use of cryptography, a BOJ official advised G7 policymakers.
They said that before cryptocurrencies “upend” the global settlement system, they needed to put in place appropriate controls.
According to Kazushige Kamiyama, director of the BOJ’s payment and settlement system section, “it is not very difficult to construct an individual worldwide settlement system by employing stablecoins”.
Priority number one, according to Kamiyama, is to update existing regulations to keep pace with the quickly changing crypto business. Furthermore, he said the G7 was working together and exchanging information on current events.
In the wake of Russian President Vladimir Putin’s invasion of Ukraine, Japan seems determined to regulate cryptocurrency.
A fresh set of suggested changes to the Foreign Exchange and Foreign Trade Act was announced by Japan’s Chief Cabinet Secretary Hirokazu Matsuno this week. The reforms would compel crypto exchanges to enforce penalties in the same way that regular banks do. ‘
Japan’s digital yen goals might be affected by new G7 standards
When it comes to Japan’s aspirations for its own central bank digital currency, any new restrictions agreed upon by the G7 might have repercussions (CBDC).
The new digital yen is already in development at the BOJ. For any new legislation, they may have to take into account the forthcoming central bank-sponsored stablecoins in April. CBDC timetables of other central banks across the globe are likely to influence the official launch date.
In light of the fact that “so many advanced country central banks are working collectively, significantly and simultaneously on CBDC, it might generate substantial changes in the settlement system,” Kamiyama said our emphasis. As one analyst put it, “Japan must make certain it is not left behind.”
Also Read: IMF Says Russian Sanctions Might Encouragecrypto Usage And Weaken The Dollar
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