As per a report by Reuters, Kazushige Kamiyama, the head of the payment systems department at the Bank of Japan (BOJ), revealed that the bank has warned G7 nations that a common legal framework for digital assets regulations is required on an urgent basis. The statement by BOJ comes as a response to the ongoing dispute between Russia and Ukraine, as crypto and their potential use for evading different government-imposed economic sanctions fall under intense scrutiny.
Japan has many plans on regulating crypto
Notably, the G7 or Group of Seven is an inter-country political forum that includes seven nations: Canada, Germany, France, Italy, Japan, the United States, and the United Kingdom.
As TheCoinRise reported, recently, Japan also planned to amend laws to control exchanges for better enforcement of sanctions.
According to Reuters, Kamiyama said that utilizing stablecoins makes it relatively easy to “create an individual global settlement system,” making it easier for nation-states to avoid more traditional and regulated payment systems based on the US currency, euro, or yen.
He went on to say that if the G7 nations are to effectively collaborate to govern cryptocurrencies and digital assets, they must have a sense of urgency, as current regulatory frameworks do not completely account for their rising popularity and proliferation around the world.
This legal framework, according to Kamiyama, will influence the creation of Japan’s own CBDC – the digital Yen. Individual privacy would have to be carefully balanced against worries about money laundering and other white-collar crimes.
The news comes just four days after the Bank of Japan stated that it is moving on to phase two of its CBDC feasibility study. Phase two is slated to begin later this month, so any new G7 laws will have an impact on the process.
According to BOJ, a conclusion on whether or not to issue CBDC in Japan would most likely be made in 2026, depending on how quickly CBDC adoption spreads around the world.