• G7 leaders were warned by senior officials from Japan’s Bank of Japan about the urgent need for an international regulatory framework to regulate cryptocurrencies.
• This statement is in reaction to ongoing conflict between Russia, Ukraine.
• There are growing concerns about cryptocurrency being used to bypass economic sanctions.

G7 members were warned by senior officials from Bank of Japan (BOJ), that they need to establish a common regulatory framework for digital currencies as soon as possible.

It is a response to Russia-Ukraine’s continuing conflict, and concerns about cryptocurrency being used to bypass economic sanctions are on the rise.

Kazushige Kamiyama, the head of the Bank of Japan’s payment systems department, told Reuters that using stablecoins makes it very easy to create “an individual global settlement system.” This would in turn make it easier for nation states to avoid current, traditional, and regulated payment systems that rely on the U.S. dollar, euro, and yen for settlement.

Japan was one of the US allies that imposed sanctions on Russia over its invading Ukraine. Many Russian banks were removed from SWIFT (the global payment system), as a result of these sanctions.

Kamiyama said that G7 nations can only coordinate their efforts to regulate cryptocurrency and digital assets when they act with urgency. This is because the existing regulations are not able to take into consideration the rapid growth of the digital asset market and its increasing adoption.

Since a long time, global governments have committed resources to developing regulations for digital assets and cryptocurrencies.

However, most regulatory frameworks were regionalized up to this point. An internationally accepted regulatory framework can increase financial sanctions against a country that are imposed by other countries, disabling it financially.

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. This article is not intended to be used as investment advice. CoinQuora advises its users to research cryptocurrency before making any investment.

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