Towards the upcoming G7 meeting in Hiroshima this May, Japan, The United States, The United Kingdom, Canada, France, Germany, and the European Union are expected to collaborate to provide a cooperative strategy for tougher global cryptocurrency regulations.
The plan follows the collapse of the major cryptocurrency exchange FTX in November, which has laid bare the poor governance of the industry and sent shockwaves through financial markets.
The meeting which also intends to promote tougher regulations of the crypto sector, aiming to increase transparency in business and consumers protection globally, also to avoid futher risk in the international financial market.
Meanwhile, Of the G7 members, Japan already has cryptocurrency regulations. Canada and the United States currently apply existing financial regulations, While the legal status of virtual assets and rules about them vary by country, the group is hoping to take the lead in formulating global standards.
Furthermore, the IMF is expected to deliver its recommendations on the regulation, supervision, and oversight of global stablecoins, crypto assets activities, and markets by July and September. Additionally, the IMF also advocates for more stringent crypto regulation and is currently developing an interoperable central bank digital currency platform to connect multiple global CBDCs and facilitate cross-border transfers.