The upcoming G7 meeting could bring a push from the seven largest democracies to tighten regulation of cryptocurrencies around the world, Kyoto news agency reports March 25.
Together, the leaders of Japan, the United States, the United Kingdom, Canada, France, Germany and the European Union They will outline a cooperative strategy to increase the transparency of cryptocurrencies and improve consumer protection, as well as deal with potential risks to the global financial system, officials told Kyoto.. This year’s summit will be held in Hiroshima in May.
Among the G7 members, Japan already regulates cryptocurrencies, while the European Union Regulation on Markets in Crypto Assets (MiCA) will come into effect in 2024. The UK is gradually developing its framework for cryptocurrencies, with the recent introduction of a special category for crypto assets on tax forms, as well as plans for a digital pound.
Canada treats digital assets like securities and the United States currently applies existing financial regulations, although some expect lawmakers to come up with a regulatory framework for cryptocurrencies in the coming months.
The Financial Stability Board (FSB), the International Monetary Fund (IMF) and the Bank for International Settlements (BIS) are making parallel efforts to set standards on digital assetsas announced in February by the group of the 20 largest economies in the world -collectively known as the G20- during a meeting in Bengaluru (India).
Recommendations on the regulation, supervision and surveillance of global stablecoins, crypto asset markets and activities are scheduled to be released between July and September. However, it is not clear what the general tone of the recommendations will be.
For example, In February, the IMF published an action plan on crypto assets, urging countries to abolish legal tender status for cryptocurrencies. The IMF’s opposition to cryptos as legal tender is well known, especially since El Salvador adopted Bitcoin as its official currency in September 2021. The fund, however, has been advocating for countries to adopt more regulation on cryptocurrencies, while working on an interoperable central bank digital currency platform to connect multiple global CBDCs and enable cross-border transactions.
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