G7 Finance Ministers Endorse Move to Regulate Cryptocurrencies

News / 07.12.2020

The finance ministers of the influential G7 group have reiterated their support towards regulating cryptocurrencies.  This was contained in a press release by the United States Department of the Treasury (USDT).

The report highlighted the discussions between members of the G7 in the latest meeting of head of financial agencies of member countries. The ministers discussed domestic and international economic policies towards dealing with the Covid-19 crisis that has plagued world finances.

Crypto-assets regulations was on the agenda and the body had discussions on the novel financial innovation. They discussed the evolving landscape of crypto-assets and other digital assets in relationship to financial security.

According to  the press release G7 members were worried about the use of crypto assets for malign purposes and illicit activities.  The financial ministers and governors further pledged their support towards regulating crypto assets. The group also stood by the joint statement issued on digital payments in October.

The G7 consist of the United States, Canada, France, Germany, Italy, Japan, the United Kingdom and is an influential economic block globally.

Crypto-assets Facing Increasing Regulations Globally

There has been a raft of regulations proposed by governments across the world towards cryptocurrencies. there is a growing suspicion from financial authorities that cryptocurrencies are used for major financial malpractices. Due to the anonymous features of crypto-assets like Bitcoin and Ethereum, many criminals prefer to launder money via these digital assets.

The presence of privacy tokens like Monero and Dash has also increased scrutiny by governments on crypto-assets.  Since they offer completely anonymous payments for users which is impossible to trace by financial agencies. South Korea became the latest country to ban privacy tokens within its jurisdiction.

The United States has been strict with regulations and several crypto exchanges have been forced to shut down operations.  The  STABLE act introduced by lawmaker Rashida Tlaid has also caused controversies among the crypto community. The bill aims to make it illegal to issue stablecoins that have not been approved by federal agencies. Despite the increased scrutiny, it should be noted that regulations are critical for cryptocurrencies to be widely adopted globally.

Olowoporoku Adeniyi is a blockchain enthusiast and crypto evangelist. Currently he loves all things crypto and covers happenings within the blockchain space.