G7 countries set date for introduction of global crypto regulation after recent banking crisis (report)
The intercontinental political forum consisting of the seven largest economies in the world (better known as the G7) is reportedly willing to implement rigid rules for the cryptocurrency industry following the many negative events that took place recently.
The final version of the framework should be ready by July this year, while the nations will discuss key elements next month in Washington.
Protecting investors in the event of another crash
As revealed by a Japanese media outlet, the governments of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States intend to join forces and design relevant global rules for the crypto sector. Consumer protection and increased transparency in business will be the main focus of the upcoming legislation.
The G7 nations believe the industry needs urgent action, blaming poor governance and a lack of strict oversight as the main reasons behind FTX error last November. Remember, the former crypto giant went from being worth over $30 billion to filing for bankruptcy in what many called a fraudulent scheme. Fraud or not, the lapse caused billions in losses for investors.
Officials have also expressed their concerns regarding the recent banking collapse in the United States. Silicon Valley Bank (SVB) and Signature Bank, which served several crypto clients, revealed liquidity difficulties and were shut down by regulators.
The former even filed for bankruptcy protection, giving itself some time to restructure its operations and find a way through the chaos. As The crypto potato reportedFirst Citizens BancShares Inc agreed to acquire SVB by buying $72 billion of its assets at a discount of $16.5 billion.
With these events in mind, the G7 will discuss the details of the future legislation at a meeting of finance ministers and central bankers in mid-May. The authorities will also comment on such policies at another gathering held in Washington the following month, attended by officials from the 20 largest economies.
The full version of the bill is expected to see the light of day in July this year.
Point the finger at Terra crash as well
The informal bloc also raised its voice about crypto a few days after the infamous demise of Terraform’s original token – LUNA – and its algorithmic stablecoin – UST.
François Villeroy de Galhau – Governor of the Bank of France – argued that the failure last May and the subsequent market crash should serve as a “wake-up call” to implement appropriate rules in the industry.
Mark Branson – president of Germany’s financial market regulator BaFin – and Narendra Modi – India’s prime minister – have later proposed that global regulators should cooperate and enforce such rules for the digital asset industry that can ensure maximum investor protection.
