G7 to Unveil Cryptocurrency Regulation Strategy in May

According to a news report from Kyodo News, top officials from Japan, the US, the UK, Canada, France, Germany, and the European Union are planning to unveil a joint global strategy aimed at increasing transparency, protecting consumers, and eliminating potential threats to the global financial system in the cryptocurrency sector.

Japan has already implemented cryptocurrency regulations, and the European Union's Markets in Crypto-Assets (MiCA) rules are scheduled to take effect in 2024. The UK is also working on its crypto legal framework, including introducing a separate category for crypto assets in tax declarations and developing plans for a digital pound. Canada classifies digital assets as securities, and the US applies existing financial legislation to cryptocurrencies. Many experts expect lawmakers to create a strong regulatory framework for cryptocurrency in the near future.

The Financial Stability Board (FSB), the International Monetary Fund (IMF), and the Bank for International Settlements (BIS) are also working in parallel to create standards for digital assets. In February, the G20 group, which includes 20 countries with the world's strongest economies, announced these joint efforts at a meeting in Bangalore, India. A series of recommendations aimed at regulating, supervising, and controlling global stablecoins, crypto asset activities, and cryptocurrency markets will be presented by July-September of this year. However, the overall direction of these recommendations remains unclear.

In February, the IMF published an action plan on crypto assets, calling on countries to deprive digital currencies of the status of legal tender. The IMF has long opposed the recognition of cryptocurrencies as legal tender, particularly after El Salvador adopted Bitcoin as its official currency in September 2021. However, the Fund is pushing for broader cryptocurrency regulation and is currently developing an interoperable platform for central bank digital currencies (CBDCs), which will unite various global CBDCs and enable cross-border transactions.

You can find more information about the IMF's requirements and G20's intentions regarding cryptocurrencies in a separate article on our website.