G7 want stricter crypto regulation2 min read
G7, the states of the seven most important industrial nations plan to advocate for stricter global crypto standards. The Japanese news agency reports Kyodo News and relies on insider information. The G7 heads of government intend to present the proposals at the upcoming meeting in mid-May in Japan.
It is not yet clear which rules the committee would like to work out specifically. Since the legal status of cryptocurrencies varies between member countries, it is conceivable that the G7 will first define a uniform legal standard. Concrete measures should be based on the proposals of the Financial Stability Board (FSB). The council published a list of measures for global crypto rules in October last year. The FSB intends to present a final draft in July 2023.
In addition, representatives of the International Monetary Fund (IMF) are said to have reaffirmed their position that the G7 countries should not recognize cryptocurrencies as legal means of payment. The IMF launched the call at the beginning of the month.
G7 – Regulates cryptocurrencies : who will win?
Which uniform standards the G7 will formulate in the end will depend on what the member countries can agree on. In fact, the topic has the potential to spark sparks within the committee, because while Germany and France, for example, already have their own legislation for the entire EU area with the MiCA regulation, the USA is pursuing a more restrictive approach.
The US Securities and Exchange Commission (SEC) has already sued several providers, including industry giants such as Paxos, Kraken and Coinbase, for alleged trading in unregistered securities. The Federal Reserve even openly issued warnings to banks looking to make the push into crypto.
It is rather unlikely that the advances made by the US regulators will be imitated in Europe. The US authorities were under pressure after the collapse of FTX. In the EU, on the other hand, no need for action was seen after the collapse. According to some experts, the MiCA would have prevented such a scenario. The ordinance of the confederation of states would be at the “international peak”. It is hard to imagine that a 180-degree turn will now be made and suddenly the restrictive course of the USA will be taken.
There should be certainty for the crypto space from mid-May when the G7 meet in Hiroshima, Japan. In addition to crypto, the committee has to find solutions to much more important problems. Because the still high inflation and the war in Ukraine are now joined by a new banking crisis.