After a series of recent mishaps, the G7, a global political body made up of the seven largest economies in the world, is apparently willing to impose strict regulations on the cryptocurrency market.
The nations will discuss the framework’s essential components next month in Washington, and the final version should be ready by July of this year.
The governments of Canada, France, Germany, Italy, Japan, the UK, and the USA aim to work together and develop relevant international standards for the cryptocurrency industry, as reported by a Japanese media site. The primary objectives of the future legislation will be consumer protection and enhancing company openness.
The recent banking meltdown in the US has raised fears among the officials as well. Regulators shut down Silicon Valley Bank (SVB) and Signature Bank, both of which had crypto clients but also revealed liquidity issues.
At a gathering of finance ministers and central bankers in mid-May, the G7 will examine the substance of the upcoming legislation while keeping those developments in mind. Officials from the top 20 largest economies will attend another summit in Washington the following month, where the authorities will again address similar plans.