The G7 leaders are allegedly planning to enact stricter crypto rules globally in an effort to promote transparency and consumer protection while addressing possible vulnerabilities to the global financial system, the Kyodo news agency reported on March 25th.
Developing regulatory frameworks that guarantee the financial system’s stability and security is becoming increasingly crucial. It is due to the increasing usage of cryptocurrencies.
Therefore, observing how other nations react to the G-7’s initiative to support stricter restrictions will be interesting since it starts in the right direction.
Leaders from the United States, the United Kingdom, Canada, France, Germany, and the European Union will together develop a plan to strengthen consumer rights and promote crypto transparency while addressing possible threats to the world financial system; officials told Kyoto. They have scheduled the meeting for this year in Hiroshima for May.
The leaders are expected to deliver recommendations on regulating, supervising, and overseeing global stablecoins, crypto asset activities, and markets. They have set a date for delivering these recommendations for July and September.
G7 Members’ Crypto Assets Regulations
The European Union’s Markets in Crypto-Assets (MiCA) legislation is set to come into force in 2024, whereas Japan is among the G7 countries that have already implemented cryptocurrency regulations.
With the recent addition of a specific area for cryptocurrency holdings on tax forms and suggestions for a digital pound. In addition, the UK is steadily expanding its cryptocurrency framework.
The US is now adhering to financial regulations. Canada acknowledges digital assets as securities, with policymakers reportedly considering a regulatory framework for cryptocurrencies in the near future. The Financial Stability Board, IMF, and BIS are working together to establish laws for digital assets.
Furthermore, The G20 includes the world’s largest economies. They have decided to create plans for supervising, monitoring, and regulating markets linked to crypto assets and stablecoins. Following a February conference in Bengaluru, India, the organization will unveil details between July and September.
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The IMF urged nations to terminate the status of cryptocurrencies as legal tender in a plan of action on crypto assets that were issued in February.
While the fund has advocated for countries to adopt greater crypto regulation, it opposes crypto as a legal tender. The fund works on an interoperable central bank digital currency platform to connect multiple global CBDCs and enable cross-border transactions.