Key Takeaways:
- The G7 countries intend to incorporate cryptocurrency legislation in the leaders’ declaration, which is usually issued following a G7 assembly.
- According to reports, the G7 countries will develop an approach to increase crypto transparency and improve consumer protections.
According to a report from the Japanese news outlet Kyodo News, the G7 plans to support the global adoption of stricter cryptocurrency regulations to improve consumer protections and transparency in the volatile market. The announcement comes just a few days before Fumio Kishida, the prime minister of Japan, holds this year’s G7 summit in Hiroshima.
The effort will also handle potential risks to the global financial system while enhancing openness and safeguarding consumers encircling digital assets. A regulatory framework for cryptocurrencies has already been put in place in Japan, and the EU’s Markets in Crypto-Assets (MiCA) regulation will shortly follow.
The other members — Britain, Canada, France, Germany, Italy, and the United States — are attempting to express their combined efforts in a leaders’ proclamation amidst persistent concerns about possible hazards to the worldwide financial system presented by cryptoassets.
The Financial Stability Board (FSB), the International Monetary Fund (IMF), and the Bank for International Settlements (BIS) are all working simultaneously to develop standards for digital assets, according to a statement made by the G20, a group of the world’s 20 largest economies, at a meeting in Bengaluru, India, in February.
Many participants are optimistic that the FSB, IMF, BIS, and G7’s efforts will contribute to the promotion of greater stability and transparency as they work to create an integrated strategy to oversee digital assets.
The strategy was developed in response to the major cryptocurrency exchange FTX’s failure in November, which exposed the industry’s shoddy governance and rocked the financial markets.
Additionally, two unexpected bank collapses in the United States this month have alarmed investors. The two were Signature Bank, which catered to cryptocurrency customers, and Silicon Valley Bank, which specialised in working with tech startups.
As a result, the report shows that despite the fact that they presently take very different approaches to the industry, the countries want to be at the vanguard of setting global regulatory standards for cryptocurrency.
