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Bank of Japan wants G7 to pace up for regulating crypto

According to Reuters, a senior Bank of Japan (BOJ) official has cautioned the G7 countries that the time is ticking on a unified framework to govern cryptocurrencies. In view of the ongoing turmoil in Ukraine, the BOJ official cautioned G7 governments to step up efforts to reduce the risk of crypto-powered sanction evasion.

They said that appropriate restrictions must be put in place before cryptocurrencies “upend” the global settlement system. “Creating an individual global settlement system utilising stablecoins is not difficult,” Kazushige Kamiyama, head of the BOJ’s payment and settlement system section, told Reuters. The aim, according to Kamiyama, is to bring the present rules up-to-date with the rapidly changing crypto business. He went on to say that the G7 is “collaborating while sharing information on current events.”

In fact, in the wake of Russian President Vladimir Putin’s invasion of Ukraine, Japan appears hellbent on controlling cryptocurrency. Hirokazu Matsuno, Japan’s Chief Cabinet Secretary, informed the cabinet of fresh proposed revisions to the Foreign Exchange and Foreign Trade Act earlier this week.

The revisions would force crypto exchanges to enforce sanctions in the same way that traditional banks do. Any new G7 laws — particularly in the areas of money laundering andF privacy — could have ramifications for Japan’s plans for its own central bank digital currency (CBDC). The BOJ is already working on a new digital yen. Because the project is expected to enter the next phase of development in April, any new legislation may need to take into account the impending central bank-sponsored stablecoins.

Read more: Japan contemplating legislation to prevent Russia from avoiding sanctions

Kunal Krishan
Kunal Krishan
Kunal is an investment space writer who firmly believes investment is something which should not be a choice but a part of everyone's life.
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