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G7 leaders call for stricter crypto regulations and global standards for digital assets

The G20 group of the world's 20 largest economies announced that the FSB, the IMF, and the BIS are all working to establish standards for digital assets

Shashank Bhardwaj
Published: Mar 28, 2023 10:13:13 AM IST

G7 leaders call for stricter crypto regulations and global standards for digital assetsImage: Shutterstock

According to a report from the Kyoto news agency on March 25, the upcoming G7 meeting is expected to see the leaders of the United States, Japan, the United Kingdom, Canada, France, Germany, and the European Union call for stricter regulations on crypto worldwide.

The leaders are expected to collaborate and devise a strategy to improve transparency and safeguard consumers in the crypto space. They will also address potential risks that crypto assets pose to the global financial system. The G7 summit is planned to take place in Hiroshima in May.

Japan and the European Union already have regulations in place for crypto. Japan has existing rules, while the EU's Markets in Crypto-Assets (MiCA) regulation will be implemented in 2024.

In the UK, a special category for crypto assets has been added to tax forms, and there are plans for the creation of a digital pound. Canada treats digital assets as securities, while the United States currently applies existing financial regulations to crypto.

Some expect that lawmakers in the US will create a regulatory framework for crypto assets in the near future.

During a meeting in Bengaluru, India, in February, the G20 group of the world's 20 largest economies announced that the International Monetary Fund (IMF), the Financial Stability Board (FSB), and the Bank for International Settlements (BIS) are all working to establish standards for digital assets.

By July and September, recommendations on the regulation, supervision, and oversight of global stablecoins, as well as crypto asset activities and markets, will be provided. It is uncertain what the recommendations will entail, as it is unclear what tone they will take.

In February, the IMF released a plan of action on crypto assets, advising nations to eliminate the legal tender status of crypto. The IMF's position against crypto as a legal tender is widely known, particularly since El Salvador recognized Bitcoin as its official currency in September 2021.

However, the IMF has been encouraging nations to adopt greater crypto regulation and is working on an interoperable central bank digital currency platform to connect multiple global CBDCs and facilitate cross-border transactions.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash

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