G7 To Partner On Tighter Crypto Regulation

Twitter icon  •  Published 1 year ago  •  Hassan Maishera

The G7 countries could work on creating a tighter cryptocurrency regulation framework in their upcoming meeting in May.

TLDR;

  • The G7 countries could be working together to introduce tighter regulations for the cryptocurrency industry.

  • Crypto regulation amongst the G7 members is disjointed at the moment as each country has implemented its policies.

G7 Members To Implement Tighter Crypto Regulation

A recent report by Kyoto News Agency has revealed that the next G7 meeting could see the seven biggest democracies in the world push for tougher regulations on cryptocurrencies globally. 

Per the report, leaders from Japan, the United States, the United Kingdom, Canada, France, Germany, and the European Union, will work on a cooperative strategy to enhance crypto transparency, boost consumer protections, and address potential risks to the global financial system. The upcoming G7 meeting will take place in Hiroshima in May.

At the moment, the regulation of cryptocurrencies is disjointed amongst the G7 members. Japan is one of the countries in the world with an active crypto regulatory region.

On the other hand, the  European Union’s Markets in Crypto-Assets (MiCA) regulation is set to go into effect in 2024. The United Kingdom is also working on its cryptocurrency framework and has recently introduced a special category for crypto assets on tax forms. 

Canada, on the other hand, already treats digital assets as securities, while the United States is using its existing financial regulations to police the crypto ecosystem, with plans to launch a crypto regulatory framework in the coming months. 

In addition to the G7, some global organizations such as the Financial Stability Board (FSB), the International Monetary Fund (IMF), the Bank for International Settlements (BIS), and the G20 are all making efforts to regulate the crypto market.

These financial institutions are already making recommendations on the best ways to regulate the crypto space. Last month, the IMF released an action plan on cryptocurrencies, urging countries to remove the legal tender status issued for cryptocurrencies. 

The IMF has been opposing crypto as a legal tender since El Salvador adopted Bitcoin as its official currency alongside the US Dollar in September 2021. The global financial institution continues to call on countries to adopt greater cryptocurrency regulations while urging central banks to launch interoperable CBDCs to go with its CBDC platform in a bid to enable cross-border transactions.

 

Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.