G7 countries want to introduce stricter crypto regulations together

In May, the members of the G7 will gather around the table to come up with a new strategy for crypto regulation. Leaders of Japan, the US, Canada, France, Britain, Germany and the European Union reportedly want more transparency and protection for investors. A shared global plan should form the basis for a regulatory framework. According to the Japanese Kyodo News, the countries may want to introduce strict regulations for crypto.

Big step towards global crypto regulation

In May, the G7 members will meet in Hiroshima, Japan. Some countries, such as Japan, already have clearer regulations for crypto. Others are still busy drafting new laws, such as the European Union with the comprehensive European crypto law, called MiCa, which should come into effect next year.

Not all countries have equally friendly regulations towards crypto. For example, in Canada crypto is regarded as a security by law, and in the US this is also a term that is often used by the American financial watchdog.

After the members meet in May, the regulators will work hard to take the next steps. Recommendations on crypto regulation are scheduled to be made in July and September.

CBDCs on the way

In February, the International Monetary Fund (IMF) also announced an action plan regarding crypto. The international financial institute called on countries not to introduce crypto as legal tender, as El Salvador did in 2021, for example. The IMF does encourage clear regulations and is itself setting up an infrastructure for CBDCs.

CBDCs, short for central bank digital currencies, are crypto assets that are an extension of existing currencies. Almost every country is developing such a CBDC. For example, the EU is working on a digital euro, and the US also has plans for a digital dollar. China has even launched its own CBDC, the digital yuan, or e-CNY.

There is speculation that governments are cracking down on crypto to give their own CBDCs more space. Through CBDCs can make existing financial systems faster, more efficient and easier to control. However, concerns have been raised about these new digital forms of money and could put an end to financial privacy and freedom.

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