According to a report by Kyoto news agency on March 25, leaders from Japan, the United States, the United Kingdom, Canada, France, Germany, and the European Union are expected to propose a coordinated strategy for increased transparency and consumer protection in the cryptocurrency market at the G7 summit scheduled to take place in May in Hiroshima. The strategy will also address potential risks to the global financial system.
While Japan and the European Union already have cryptocurrency regulations in place, Canada treats digital assets as securities, and the US applies existing financial regulations to crypto. The UK is gradually developing its crypto framework, with plans for a digital pound in the works. The Financial Stability Board, the International Monetary Fund, and the Bank for International Settlements are also making parallel efforts to establish global standards for digital assets, with recommendations set to be delivered by July and September.
However, the overall tone of the recommendations is unclear, as the IMF has previously urged countries to abolish legal tender status for cryptocurrencies but has also been advocating for greater crypto regulation while working on an interoperable central bank digital currency platform to connect multiple global CBDCs and enable cross-border transactions.