G7 Leaders to Discuss Global Crypto Regulations
Leaders from the G7 countries, namely Japan, the United States, the United Kingdom, Canada, France, Germany, and the European Union, are expected to outline a global cooperative strategy for digital assets in May.
According to a report from Kyodo, the leaders will discuss stricter regulations on cryptocurrencies worldwide to increase transparency, enhance consumer protections, and address potential risks to the global financial system. The summit will take place in Hiroshima this year.
Current crypto regulations in G7 countries
Among G7 countries, Japan already regulates cryptocurrencies, while the European Union is set to introduce its Markets in Crypto-Assets (MiCA) regulation in 2024. The United Kingdom is gradually developing its crypto framework, with a special category for crypto assets on recently introduced tax forms and plans for a digital pound. Canada treats digital assets as securities, and the United States currently applies existing financial regulations to crypto, with some anticipating a crypto regulatory framework from lawmakers in the coming months.
Parallel efforts toward standards for digital assets
Apart from the G7 countries, other global organizations are making parallel efforts toward standards for digital assets. The Financial Stability Board (FSB), the International Monetary Fund (IMF), and the Bank for International Settlements (BIS), the group of the 20 biggest economies of the world collectively known as G20, announced in February during a meeting in Bengaluru, India, that they would work on recommendations on the regulation, supervision, and oversight of global stablecoins, crypto assets activities, and markets to be delivered by July and September.
IMF’s stance on cryptocurrencies
In February, the IMF released an action plan on crypto assets, urging countries to abolish legal tender status for cryptocurrencies. However, the IMF has been advocating for governments to adopt greater crypto regulation and is working on an interoperable central bank digital currency (CBDC) platform to connect multiple global CBDCs and enable cross-border transactions.
Overall, the global push for crypto regulations is ongoing, and countries are taking their time to develop their crypto frameworks while working on cooperation and standardization.
The G7 countries and other global organizations are looking to enhance transparency, ensure consumer protections, and address potential risks to the global financial system.