G7 Nations to Work Towards Strict Global Cryptocurrency Laws

Paigambar Mohan Raj
Source: Bitcoin.com

Cryptocurrency regulation is one of the biggest agendas for the major economic countries. The seven largest democracies may advocate for stricter cryptocurrency laws globally at the upcoming G7 summit. The countries in question include Japan, the United States, the United Kingdom, Canada, France, Germany, and the European Union. The development was first reported by the Japanese news agency, Kyodo.

To promote crypto transparency and improve consumer protections, leaders from each nation will lay forth a coordinated plan. Moreover, officials communicated that they will also address potential threats to the world banking system. The G7 Summit 2023 will take place in Hiroshima in May.

How does the global group intend to regulate the cryptocurrency sector?

Japan is one of the G7 nations that have cryptocurrency regulations in place. On the other hand, the European Union will implement its Markets in Crypto-Assets (MiCA) law in 2024. Meanwhile, with a separate category for crypto assets on tax forms, the United Kingdom is steadily creating its crypto framework. The United States presently applies existing financial regulations to cryptocurrencies, and Canada treats digital assets as securities. Nonetheless, many anticipate that US politicians will introduce a framework for regulating cryptocurrencies soon.

The Financial Stability Board (FSB), International Monetary Fund (IMF), and Bank for International Settlements (BIS) are all working on norms for digital assets in parallel. Furthermore, by July and September, recommendations on how to control, monitor, and oversee the markets for crypto assets, stablecoins, and related activities are expected to be presented.

The International Monetary Fund (IMF) published an action plan on crypto assets in February and urged nations to terminate the status of cryptocurrencies as legal cash. Since El Salvador accepted Bitcoin (BTC) as its official currency in September 2021, the IMF’s hostility towards digital assets has become more visible. Nonetheless, the fund has been pushing for countries to embrace stricter crypto regulations while also developing an open-source platform for central banks to connect their digital currencies and facilitate international settlements.