G7 Summit to Address Crypto Regulation: A United Front for Global Standards
by FARUK IMAMOVIC | VIEW 362
As the 49th G7 summit approaches, leaders from the world's most influential industrialized nations are poised to intensify discussions on cryptocurrency regulations. The forthcoming summit, scheduled for May 2023 in Japan, is expected to see the G7 countries—Japan, the United States, the United Kingdom, Canada, France, Germany, and the European Union—come together to develop a cooperative strategy for enhancing cryptocurrency transparency, bolstering consumer protection, and mitigating potential risks to the global financial system.
Formulating Global Standards for Virtual Assets
The G7 nations are determined to take the reins in establishing global standards for virtual assets. With Japan already possessing crypto regulations in place, the other member nations—including the UK, Canada, France, Germany, Italy, the United States, and the European Union—are eager to collaborate and become leaders in this area.
An anonymous official revealed that the G7 plans to accelerate discussions, with a particular focus on a meeting of finance ministers and central bank members scheduled for mid-May. This meeting will take place just days before Japanese Prime Minister Fumio Kishida hosts the G7 summit in Hiroshima.
The legal status of digital assets and associated regulations varies across countries; however, the G7 aims to create a global standard. In October 2022, the Switzerland-based Financial Stability Board (FSB) published recommendations for a regulatory framework, asserting that commercial banks' crypto-asset activities should be regulated.
The FSB intends to release the final version of this document in July 2023. The International Monetary Fund (IMF) has also highlighted crucial components for individual countries, with the objective of devising comprehensive and coordinated rules to govern the proliferation of cryptocurrencies.
Moreover, IMF directors have agreed that crypto-assets should not receive the status of official currency or legal tender. The anonymous official also mentioned that cryptocurrency-related topics will feature prominently on the agenda for the upcoming meeting of finance ministers and central bank governors from the Group of 20 major economies (G20) in Washington in mid-April.