- Cryptocurrency trading has grown in the past year with Billions of dollars transacting every month
- There have been calls to put a strategy in place to enable regulations on cryptocurrency across the globe
- In May, the G7 leaders are expected to outline a global cooperative strategy for digital assets
The next G7 meeting may see a push from the world’s seven largest nations for tougher regulations on cryptocurrency. This is according to the Kyoto news agency on March 25.
According to officials in Kyoto, G7 leaders from Japan, the United States, the United Kingdom, Canada, France, Germany, and the European Union will outline a joint strategy.
The G7 leaders have set a plan in motion to increase crypto clarity and consumer protections, as well as address potential risks to the global financial system. The organization responsible for planning the G7 meeting will hold the meeting in Hiroshima in May this year.
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Japan is already regulating cryptocurrencies among G7 country members. Meanwhile, the European Union’s Markets in Crypto-Assets (MiCA) regulation is set to take effect in 2024. The United Kingdom is advancing its crypto structure, with a new tax class for crypto assets and plans for a digital pound in the works.
Canada classifies digital assets as securities. Its neighbour, the United States presently applies existing financial regulations to crypto. In the coming months, legislators are expected to pass a crypto regulatory framework.
IMF stand on cryptocurrency regulations
Parallel efforts toward cryptocurrency regulations are being made. The Financial Stability Board (FSB), the International Monetary Fund (IMF), and the Bank for International Settlements (BIS), as announced in February during a meeting in Bengaluru, India, by the group of the world’s 20 largest economies — generally known as the G20.
In July and September, the G20 is expected to make guidance on the leadership, supervision, and oversight of global stablecoins, crypto assets, and markets. However, it is unclear what the overall tone of the suggestions will be.
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For example, in February, the IMF issued an action plan on crypto assets. The funding body urged nations to remove cryptocurrencies from legal tender status. It is well known what stand the IMF has on cryptocurrency as a legal tender. Particularly since El Salvador accepted Bitcoin as its official currency in September 2021. The fund, on the other hand, has advocated for countries to adopt stricter crypto regulations, while also developing an interoperable central bank digital currency platform to link multiple global CBDCs and allow cross-border transactions.