The Group of Seven (G-7) leading industrialized nations is pushing for tougher global cryptocurrency regulations in the wake of a number of high profile failures of digital lenders and exchanges.
The G-7 nations say that new regulations are needed to help increase transparency and enhance consumer protections worldwide, particularly for retail investors.
G-7 discussions on regulating crypto are increasing in the lead up to the group’s next meeting of financial ministers and central bankers in mid-May of this year.
Members of the G-7 include the U.S., Canada, France, Germany, Italy, Japan and the United Kingdom.
Japan is hosting this year’s G-7 summit in Hiroshima, and member nations are expected to state their joint intentions to enact tougher crypto policies in a declaration to be signed by all member countries, according to media reports.
Japan already has one of the toughest regulatory environments for crypto anywhere in the world, with FTX customers in that country being among the first to get their money back after the crypto exchange failed last November.
Regulators around the world are working towards a global consensus on regulating cryptocurrencies.
Crypto has come under even more scrutiny from regulators in recent weeks following the collapse of New York-based Signature Bank, which was a large lender to cryptocurrency companies.
Despite the impending threat of more regulation, cryptocurrencies have been rallying this year and outpacing all other asset classes, including stocks and commodities.
The price of Bitcoin (BTC), the biggest cryptocurrency by market capitalization, has risen 67% so far in 2023 to reach $27,750 U.S.
