- According to the Kyoto news agency, the upcoming G7 meeting could bring much stricter regulatory measures for cryptocurrencies.
- The G7 will seek to develop a collaborative approach to improve transfer and protect users in the crypto ecosystem.
Approximately 15 years have passed since the creation and launch of the first cryptocurrency, Bitcoin (BTC). However, while it may sound like a long period of time to some, it really is a nascent industry.
It was not long ago that cryptocurrencies began to gain relevance at a faster rate, especially after the pandemic and crisis concerns in traditional markets, and as investor attention towards cryptocurrencies increased, so did that of regulators.
For a long time, the crypto market was considered the Wild West of finance, referring to the absence of regulations and Over the years, world leaders have launched various efforts to try to regulate the industry, but, as has happened many times in history, regulations have not always been efficient in terms of achieving user protection.
G7 will seek a cooperative strategy to regulate cryptocurrencies
The G7, short for Group of Seven, is an organization made by leaders of some of the most important economies today: United States, Canada, Germany, France, Japan, United Kingdom and Italy.
Annually, leaders meet at a summit to discuss current pressing issues with the goal of coordinating efforts and it seems that cryptocurrencies will be part of the discussion schedule this year, which will take place in May in Hiroshima, Japan.
According to Kyoto, the leaders are preparing for the next summit to establish a collaborative approach to improve transfer and protect users in the crypto ecosystem. In particular, the report ensures that the G7 will seek to establish policies for cryptocurrencies in a coordinated manner that are stricter and tougher.
Keep in mind that this is taking place against a backdrop of economic challenges such as global inflation and a banking crisis.
Will countries establish a stricter policy for cryptocurrencies?
Much of the world’s countries have made isolated efforts to regulate the cryptocurrency industry.. For example, Japan is currently one of the countries with a strong regulatory regime for crypto. Proof of this was that FTX customers in Japan were among the first to get their money back.
Meanwhile, other countries like Canada treat cryptocurrencies like securities and the United States has tried to enforce existing financial regulations; designed for the traditional market, to cryptocurrencies.
In this way, the objective is to establish a global consensus on how the regulation of cryptocurrencies should be. In fact, there are currently different efforts that have this as their objective.
It is important to remember that regulation can be a double-edged sword; if applied properly, it can foster the development and growth of the industry. However, he is also capable of suffocating her.
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