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G7 nations to push for stricter cryptocurrency regulations

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Officials from the Group of Seven (G7) leading industrial countries will discuss regulations on cryptocurrencies to improve transparency and consumer protection as part of preparations for the next meeting of the group in Hiroshima, Japan, in May, Kyodo News reported on Sunday. The group aims to take the lead in setting global standards for emerging digital asset industries, the report said.

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Fast facts

  • The members – Japan, the U.S., U.K., Canada, France, Germany and Italy make up the group along with the European Union – plan to include cryptocurrency regulation in the leaders’ declaration that typically follows a G7 meeting, Kyodo News reported citing unnamed officials with knowledge of the plan.
  • Cryptocurrency related issues will also be a part of the upcoming G20 meeting of financial ministers and central bank governors set to take place in Washington D.C this April, according to Kyodo.
  • Since last year, Japan has announced relaxed restrictions on the crypto sector, such as plans to allow domestic investors to trade certain stablecoins issued overseas 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 efficiencies and benefits of the new asset class.
  • In contrast, U.S. financial regulators have cracked down on local crypto trading platforms, imposing fines and threatening legal action against digital asset staking services, alleging they violate the country’s securities laws.
  • However, the state of Texas is introducing legislation to attract crypto investment and protect the interests of such companies, illustrating the divide over how to treat the emerging industry and its potential disruption of traditional financial interests.
  • The International Monetary Fund (IMF) released an action plan in February which said countries should not grant cryptocurrencies official currency or legal tender status, citing risks to monetary stability.

See related article: Internal Revenue Service in U.S. solicits public opinions on proposed NFT taxes

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