Support for an appropriate regulation of virtual currencies was announced at the Group of Seven (G7) summit which was help in Germany in June with the UK present as one if the representative.
Along with the UK Prime Minister, David Cameron at the G7, which was held in Bavaria back on the 7th to the 8th June 2015, were heads of state from the largest economic countries in the world including Germany, Italy, US, Japan, Canada and France.
One of the major concerns that was raised in the summit statement by the G7 group was the use of digital currency like bitcoin to finance terrorist group under the cloak of anonymity and this kind of activity was something it was looking to oversee. The regulation of emerging methods of payment would be part of this process according to the statement which read “We will take further actions to ensure greater transparency of all financial flows, including through an appropriate regulation of virtual currencies and other new payment methods.”
A recommendation was made by the Financial Action Task Force (FATF) that all digital currency exchanges be monitored and before being allowed to operate would be required to hold a license to operate. This recommendation was fully supported by the G7 group in one of its pledges and in terms of efforts to both deploy and develop the various oversight standards in which the group said it would be actively contributing.
According to the group “We will strive to ensure an effective implementation of FATF standards, including through a robust followup process.”