Several countries worldwide are taking cryptocurrency regulations as their top priority and trying to come up with comprehensive crypto regulations. According to reports, to ensure transparency in crypto management the leading industrial country group G7 has decided to discuss this issue in the upcoming G7 meeting in Hiroshima, Japan in May. The G7 is an intergovernmental group of 7 countries comprising Japan, France, Canada, the United States, Italy, Germany, and the European Union is a non-enumerated member of the group.
The G7 countries want to tackle the emerging issues from crypto management after the FTX exchange collapse in November 2022 due to the bad governance of the industry. It also shocked the governments of the entire world.
Recently, the three biggest banks in the United States, the Silicon Valley Bank (which specializes in dealing with technology startups) and the Signature bank which is considered a crypto-friendly bank forced G7 countries to discuss this issue in the upcoming meeting at Hiroshima.
Among the members of G7 countries Japan is the only one which has a crypto regulation framework. The United States and Canada are using their traditional financial regulations to manage cryptocurrencies.
According to the reports released in January, the Japanese regulatory authorities will provide relief to domestic investors by allowing them to trade certain stablecoins issued overseas from June 2023. The collapse of banks in the United States alarmed countries worldwide to check out the compatibility of their existing crypto regulation with current trends in the market.
Amidst the chaos regarding the regulation of cryptocurrency where every country and authority provides different policies to manage the cryptocurrencies, the G7 will try to resolve this problem in the upcoming meeting. The International Monetary Fund (IMF) has already issued an action plan on cryptocurrencies in February. In the action plan, it was mentioned that countries should not replace cryptocurrencies with traditional currencies by calling it “not the first best option”. Now it will be interesting to see what type of regulations the G7 countries will bring in the upcoming meeting in Hiroshima Japan.