G7 Country Group Affirms Support for CBDC Development and Crypto Regulation

Liputan6.com, Jakarta Last week the committee, a group of countries (G7), met in Niigata, Japan to discuss, among other things, the global financial implications for central bank digital currencies (CBDC) and laws governing the transfer of cryptocurrency assets.

Reporting from Cointelegraph, Tuesday (23/5/2023), in a communiqué summarizing the discussion, the committee reaffirmed its support for developing a CBDC, albeit with a few conditions.

Committee members also discussed the controversial “Travel” rule which requires any financial institution processing cryptocurrency transactions over USD 3,000 or the equivalent of IDR 44.6 million (assuming an exchange rate of IDR 14,883 per US dollar) to disclose name, address and information sender account.

Meanwhile, the European Council has approved updated regulations that expand tax reporting requirements to include transfers of crypto assets.

They require crypto asset service providers (CASPs) to collect information about transfers of any amount of crypto assets to ensure traceability and identify suspicious transactions.

It strengthens the European Union’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) rules and proposes the creation of a new European AML agency.

In another worrying development for the industry, the UK Finance Committee “strongly recommends” regulating retail crypto trading and investment activity as gambling, consistent with the principle of “equal risk, equal regulatory reward.”

The country group argues that price volatility and lack of intrinsic value means unbacked crypto assets will inevitably pose significant risks to consumers.

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