TronWeekly

Crypto World News

You are here: Home / Archives for g7

g7

G7 To Stricter Crypto Regulations While U.S. Govt Faces Criticism For Missteps

by

The G7 major industrialized democracies reportedly plan to push for stricter cryptocurrency regulations. According to a report, officials with knowledge of the plan said that the G7 aims to increase business transparency and consumer protection in the crypto sector. 

The G7 will accelerate the pace of discussions towards a meeting of finance ministers and central bankers in mid-May, just before the summit in Hiroshima. However, the move follows the collapse of the major exchange FTX in November, which exposed the poor governance of the industry and sent shockwaves through financial markets. 

It also comes amid investor concerns about sudden bank failures in the U.S., which included Silicon Valley Bank and Signature Bank. The G7 is seeking to state its collective efforts in a leaders’ declaration, with Japan already having virtual currency regulations in place. 

The group is hoping to take the lead in formulating global standards, as the legal status of virtual assets and rules about them vary by country. Moreover, internationally, the Financial Stability Board and the International Monetary Fund have already released recommendations and policy papers on creating a regulatory framework for crypto assets. 

According to officials, IMF directors have generally agreed that virtual assets should not be granted official currency or legal tender status. Issues associated with crypto assets are likely to be on the agenda of the upcoming G20 meeting in Washington in mid-April.

Nevertheless, as of now, the legal status of virtual assets and rules about them vary by country. However, the G7’s move could potentially set a precedent for other countries to follow in the future.

U.S. Government’s Missteps In Crypto Regulation

While the G7 was busy with their planning, an intriguing debate emerged. The U.S. government’s recent attempts to regulate the cryptocurrency industry have come under fire from Keiko Yoshino, executive director of the Puerto Rico Blockchain Trade Association. 

Yoshino argues that recent directives from the Federal Reserve and executive branch designed to debank crypto firms, a pending lawsuit against the largest and most trustworthy U.S. exchange, Coinbase, and increasingly hostile rhetoric from Congress are far from appropriate.

Yoshino believes that the government has a role in overseeing the crypto industry, but recent regulatory announcements abuse power. She points out that crypto was born out of the financial crisis of 2008 and has emerged as an alternative to inflationary fiat currency. 

Yoshino argues that the government should not discourage banks from holding crypto or people from buying it if they want to. Instead, she believes the government should explore crypto as a potential alternative to fiat currency. 

She quotes Benjamin Franklin, who said:

Those who would give up essential Liberty to purchase a little temporary Safety deserve neither Liberty nor Safety.

Related Reading | Weekly Market Watch: Bitcoin & Ethereum’s Bullish Ride, Altcoin Follows Their Footsteps

G7 Will Host a Discussion on Crypto by the Global Financial Regulators

by

The Group of Seven, or G7, central bank governors and finance ministers are allegedly planning to discuss cryptocurrency legislation.

According to a Tuesday report from Reuters, representatives from the United States, Canada, Japan, Germany, France, Italy, and the United Kingdom are expected to speak on issues related to a regulatory framework for cryptocurrencies at a meeting starting on Wednesday in Germany’s cities of Bonn and Königswinter.

Villeroy allegedly stated that recent crypto market volatility had served as a “wake-up call” for global authorities, pointing to several stablecoins de-pegging from the US dollar and the prices of key tokens falling.

G7 will discuss the urgent need for crypto regulations

“Europe paved the way with MiCA,” referring to the European Parliament’s legislation aimed at forming a regulatory framework on crypto. “We will probably discuss these issues among many others at the G7 meeting in Germany this week.”

Villeroy at an emerging markets conference in Paris

Finance ministers and central bank governors will meet in Germany from May 18–20 to discuss policies related to member countries’ recovery and financial stability following the COVID-19 pandemic.

They will also discuss “shaping the upcoming transformation processes in the context of digitalization and climate neutrality” and business policy at the International Monetary Fund, according to the G7 website.

The organization released recommendations for the likely implementation of central bank digital currencies in 2021, as well as a warning that certain stablecoins may pose a threat to the global financial system in 2019.

Given crypto’s expanding importance in regional markets, Villeroy has asked EU officials to build a legislative framework, claiming they only had “one or two years” to act.

Prior to his election victory in France, Emmanuel Macron stated that he backed the European Parliament’s recent moves to regulate cryptocurrency, including MiCA, but that any regulations should not stifle innovation.

G7 Talks About Fintech and Rising CBDC Trend, Claims Libra Can Only Take Off After Intense Scrutiny

by

The world of cryptocurrencies has always been given the side-eye by traditional institutions and as the years have progressed the sentiment has more or less remained the same. Despite efforts by multiple cryptocurrency organizations, policymakers have increased their scrutiny over the industry.

According to the latest reports, a gathering of G7 nations has decided to halt the launch of Facebook’s Libra cryptocurrency until and unless it meets regulatory standards. The group believed that Facebook’s track record over the past few years has been shoddy and they would not let Libra just walk in without any supervision.

The G7 meeting included members from the United States, Canada, Japan, Germany, France, Italy and Britain. This cluster of finance ministers and central banks were also of the opinion that digital currencies and payment methods could be the way to make transactions cheaper and much more seamless. One of the biggest tasks to be undertaken by the new venture is to cut out the middleman and protect the customer firsthand.

Despite stating the positives, the G7 believed that if digital assets were left unsupervised, it would lead to calamitous results. A draft from the committee read:

“The G7 continues to maintain that no global stablecoin project should begin operation until it adequately addresses relevant legal, regulatory, and oversight requirements through appropriate design and by adhering to applicable standards.”

The G7 claimed that the unfettered use of cryptocurrencies could lead to issues such as money laundering, terrorist and proliferation financing, and even undermine legal certainty. Facebook’s Libra has come under the scanner multiple times for flouting country standards and also because of its parent company’s reputation. Libra was not the only topic of discussion as the G7 also realized that several countries were testing out their own centrally backed cryptocurrencies.

Member nations had also proposed a list of 10 recommendations back in April which covered the topics of regulating stablecoins. This list plays a crucial role at a time when even organizations like the European Central bank was planning to trademark the term ‘digital euro’. The body reiterated that all discussions surrounding digital assets should also account for the risks associated with it. Major scams have shaken up the industry multiple times before and a tight grasp on policies may be the only way to take the industry mainstream.