The Group of Seven (G7) major industrial democracies are reportedly planning to promote tougher regulations of the cryptocurrency sector during the 49th G7 summit which is set for May 2023 and will take place in Hiroshima, Japan.
The plan aims to increase transparency and consumer protection, according to unnamed officials with knowledge of the plan. kyodo news Reported on 26 March.
The move comes in the wake of concerns about the potential risks to the global financial system posed by crypto assets. The collapse of major cryptocurrency exchange FTX in November exposed the poor governance of the industry and sent shock waves through financial markets.
G7 looks forward to being a leader in creating global standards for virtual assets. Japan, which already has cryptocurrency regulations, and other member leaders such as Britain, Canada, France, Germany, Italy, the United States and the European Union are seeking to make their collective efforts known in the announcement.
wants to set a global standard
Officials say the G7 will accelerate the pace of related discussions toward a meeting of finance ministers and central bankers in mid-May, just days before Japanese Prime Minister Fumio Kishida hosts this year’s summit in Hiroshima.
While the legal status of virtual assets and regulations regarding them vary by country, the G7 is seeking to establish global standards.
The Financial Stability Board (FSB), which is headquartered in Switzerland, issued recommendations on creating a regulatory framework in October last year, stating that crypto assets should also be subject to regulations for commercial bank activities. FSB plans to announce its final version of the framework in July this year.
The International Monetary Fund (IMF) has also outlined key elements for each country to consider in the development of comprehensive and coordinated regulations following the proliferation of crypto. Among other guidelines, IMF directors have generally agreed that crypto assets should not be granted official currency or legal tender status.
Issues involving crypto assets are also likely to be on the agenda for an upcoming meeting of finance ministers and central bank governors of the Group of 20 (G20) major economies in Washington in mid-April, according to the officials who spoke on the condition of anonymity.
Source: finbold.com
