Officials from the major industrial countries of the Group of Seven (G7) will discuss regulations on cryptocurrencies to improve transparency and consumer protection as part of preparations for the group's next meeting in Hiroshima, Japan, in May, Kyodo reported. News on Sunday. The group aims to take the lead in setting global standards for emerging digital asset industries, according to the report.
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Fast facts
- The members - Japan, the US, the UK, Canada, France, Germany and Italy make up the group along with the European Union - plan to include cryptocurrency regulation in the leaders' declaration that usually follows a G7 meeting. . Kyodo News reported citing unnamed officials with knowledge of the plan.
- Crypto-related topics will also be part of the upcoming G20 meeting of finance ministers and central bank governors taking place in Washington DC this April, according to Kyodo.
- Since last year, Japan has announced relaxed restrictions on the cryptocurrency sector, such as plans to allow domestic investors to trade certain stablecoins broadcast abroad on local platforms.
- Other Asian regions, such as Hong Kong and South Korea, have also announced new approaches to the crypto and digital asset industry, as well as metaverse initiatives, to promote the efficiency and benefits of the new asset class.
- By contrast, US financial regulators have repressed on local cryptocurrency trading platforms, impose fines and threaten legal action against digital asset staking services, alleging that they violate the country's securities laws.
- However, the state of Texas is introduction of legislation to attract crypto investment and protect the interests of such companies, illustrating the division over how to treat the emerging industry and its potential disruption of traditional financial interests.
- The International Monetary Fund (IMF) published a action plan in February, which said countries should not grant cryptocurrencies official currency or legal tender status, citing risks to monetary stability.
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