Leaders from the Group of Seven nations, or G7, are reportedly gearing up to take on cryptocurrencies with a call for stricter regulations at their next meeting, according to a report from Kyoto news agency.
The move comes as governments around the world grapple with the challenges posed by digital currencies, which have been linked to money laundering, cybercrime, and other illicit activities.
Officials have indicated that the G7 is planning to ramp up discussions on the matter and hold a meeting of finance ministers and central bankers in mid-May, just a few days before this year’s summit in Hiroshima, which will be hosted by Japanese Prime Minister Fumio Kishida.
G7 Leaders Push For Crypto Transparency, Consumer Protection
The G7 is an international economic forum consisting of seven of the world’s largest advanced economies: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
The G7 holds an annual summit, which serves as an opportunity for leaders to discuss shared concerns and coordinate policies.
Kyoto news agency has reported that officials have revealed plans for the next G7 summit to establish a collaborative approach aimed at improving transparency and safeguarding consumers in the world of cryptocurrency.
G7 leaders met with the heads of NATO and the European Commission in March. Image: Doug Mills/AFP/Getty Images
Additionally, the group is expected to address potential threats posed by digital currencies to the global financial system. While Japan has already implemented regulations on cryptocurrencies, the U.S. and Canada are currently relying on existing financial regulations to govern this emerging market.
Global Efforts To Further Crypto Regulation
In a coordinated effort, the International Monetary Fund (IMF), the Financial Stability Board (FSB), the Bank for International Settlements (BIS), and the Group of 20 (G20) are working towards establishing standards for digital assets. This was announced in February during a meeting in Bengaluru, India.
While the FSB aims to unveil its final framework in July of this year, the IMF has already released a policy paper in February outlining key considerations for countries in developing comprehensive and coordinated regulations for cryptocurrencies.
Among these guidelines is a general agreement that digital assets should not be granted legal tender status or be recognized as official currency.
As the FSB, IMF, BIS, and G7 work towards establishing a unified approach to regulating digital assets, many stakeholders are hopeful that these efforts will help to promote greater stability and transparency in the cryptocurrency market.
Crypto total market cap rising a bit at $1.13 trillion on the daily chart at TradingView.com
However, there is still much work to be done before a comprehensive regulatory framework can be put in place not only by the G7 but other concerned government agencies.
As the cryptocurrency market continues to evolve and new risks emerge, policymakers and regulators will need to remain vigilant and adaptable in order to keep pace with these developments and ensure that digital assets are held to the same high standards as traditional financial instruments.
-Featured image from Fair Observer