- This rule requires service providers to share customer data
- The FATF believes this will solve the problem of tax defaulters
- The bloc is expected to present a draft global regulatory framework for cryptoassets in June
The Group of Seven (G7) met in Niigata, Japan, Saturday, May 13. Among other things, the parties discussed the global implementation of the “Travel Rule” regarding cryptocurrency.
Japanese Prime Minister Fumio Kishida said that summit participants supported stricter regulation of the digital asset market..
The new regulatory framework will be primarily based on the FSB and IMF recommendations presented earlier this year.
The block also expressed support for the implementation of the “Travel Rule”:
“We commend the FATF initiative to implement as soon as possible the regulator’s standards and requirements for virtual assets, including the “Transfer Control Rules,” as well as its work on risk prevention related to, among others, DeFi with peer-to-peer platforms.”
Reminder, the “Travel Rule” requires service providers to share information about participants in transactions over $3,000.
In theory, this would prevent traders from using “gaps” in the tax laws of individual jurisdictions to hide their income.
The meeting in Niigata precedes the annual G7 summit. It will be held in Japan from May 19 to 21.
As early as June, block participants are expected to present a draft of the global regulatory framework for the crypto-asset sphere.