G7 nations reportedly want tighter rules for cryptocurrencies

• The G7 nations are reportedly going to push for tougher crypto regulation at this year’s summit.
• Finance ministers and central bank governors of G20 will reportedly discuss crypto assets during their upcoming meeting.

The International Group of Seven, or G7, is reportedly looking to impose tougher regulations on the crypto industry. The industrialized democracies will reportedly push for tighter regulation of the crypto sector, in the interest of consumer protection and greater business transparency. 

Discussion on crypto regulation ahead of G7 summit

According to a report by Kyodo News, the G7 nations plan to accelerate the pace of discussions pertaining to the regulation of crypto, ahead of this year’s summit in Japan.

People familiar with the matter revealed that the same will be discussed at a meeting later this year in May. During the meeting, finance ministers and central bankers of the participating nations will decide on crypto regulation. 

The G7 nations will reportedly state their collective efforts in a leaders’ declaration in May. Recent developments in the global financial system have highlighted the risks that digital assets pose to the traditional finance sector.

Of the seven participating nations, Japan is the only one with clear regulations for cryptocurrencies. The other nations have been holding crypto to the same standards as traditional assets so far. 

The collapse of crypto exchange FTX last year followed by the multiple bank failures in the U.S. have sent ripples across the global financial system. It has left lawmakers and policymakers scrambling to better regulate this volatile industry. 

Crypto assets and their potential risks will reportedly be a part of the upcoming G20 meeting as well. Finance ministers and central bank governors of the twenty major economies will meet in Washington D.C. next month to discuss crypto regulation, among other things.

Meanwhile, the Financial Stability Board has indicated it will announce the final version of its framework for crypto by July.