G7 will agree on stricter crypto regulation


It is anticipated that leaders from the European Union, Japan, the United States, the United Kingdom, Canada, France, Germany, and Japan will develop a worldwide cooperation plan for digital assets in May.

Kyoto news agency reported on March 25 that the seven largest democracies might seek stricter rules on cryptocurrency at the upcoming G7 conference.

According to officials in Kyoto, Japan, the United States, the United Kingdom, Canada, France, Germany, and the European Union will outline a cooperative strategy to increase crypto transparency, enhance consumer protections, and address potential global financial risks.

Japan is the only G7 nation to regulate cryptocurrencies now, while the European Union’s Markets in Crypto-Assets (MiCA) law is scheduled to take effect in 2024. The United Kingdom is progressively strengthening its crypto framework, with a newly approved tax form category for crypto assets and ambitions for a digital pound.

Canada classifies digital assets as securities, whereas the United States now applies existing financial rules to crypto, with some predicting a legislative framework for crypto in the coming months.

Recommendations on regulating, monitoring, and overseeing global stablecoins, crypto asset activities, and markets are anticipated in July and September. However, it is still being determined what the tone of the suggestions will be.

In February, the International Monetary Fund (IMF) announced an action plan on crypto assets, pushing nations to remove cryptocurrencies’ status as legal cash. It is good knowledge that the IMF opposes cryptocurrencies as legal money, notably after El Salvador accepted Bitcoin as its official currency in September 2021. However, the fund has been campaigning for governments to implement stricter crypto regulations while developing an interoperable infrastructure to link several global CBDCs and facilitate cross-border transactions.

Also Read: Deposits in banks decline as investors rush to Bitcoin

Leave A Reply

Your email address will not be published.