The G7 countries have come together to promote the regulation of virtual currencies or crypto assets. Due to the bankruptcies of major exchanges and the need to protect users worldwide, laws will be developed to achieve this. Japan is currently ahead of other countries in creating comprehensive regulations and will lead discussions at this year’s G7-related meetings as chairman. Discussions will aim to be incorporated into the summit declaration which will be held in Hiroshima in May.
Concerns have been raised that the mismanagement of cryptocurrencies might potentially damage financial markets across national borders. The G7 aims to stabilize the financial system amidst various credit concerns caused by bank failures in the United States.
Japan hopes to reach an agreement on this matter during the G7 Finance Ministers and Central Bank Governors Meeting in Niigata City in May, which might lead to a successful outcome at the Hiroshima Summit. Meanwhile, the G20 finance ministers and central bank governors meeting in Washington D.C. in mid-April is expected to discuss the impact of virtual currencies on the financial system.
Finally, it is notable that the bankruptcy of FTX Trading in November 2018 caused a growing trend of withdrawal from business and trading in the cryptocurrency industry.
[Washington Kyodo]It was learned on the 26th that the G7 will jointly promote the regulation of crypto assets (virtual currencies). In light of the bankruptcies of major exchanges, we will promote the development of laws to protect users around the world. Japan is ahead of the rest of the world in creating comprehensive regulations, and will lead discussions at this year’s G7-related meetings as chairman, with the aim of incorporating it into the summit declaration at the summit to be held in Hiroshima in May.
This was confirmed by several officials. While the use of cryptocurrencies is expanding worldwide, regulations are lax, and there is a risk that the misappropriation of customers’ assets will shake financial markets across national borders. The G7 will take the lead in stabilizing the financial system amidst smoldering credit concerns caused by a series of bank failures in the United States.
Japan hopes to reach an agreement at the G7 Finance Ministers and Central Bank Governors Meeting to be held in Niigata City in May, leading to the outcome of the Hiroshima Summit. The G20 finance ministers and central bank governors meeting to be held in Washington, D.C. in mid-April is expected to discuss the impact of cryptocurrencies on the financial system.
In the cryptocurrency industry, the bankruptcy of FTX Trading in November 2018 triggered a growing movement to withdraw from business and suspend trading.
As the use of cryptocurrencies continues to expand around the world, the need for comprehensive regulations to protect users and stabilize the financial system becomes increasingly urgent. The G7 has taken a step in the right direction by jointly promoting the regulation of crypto assets. Japan, ahead of the rest of the world in creating regulations, will lead discussions at this year’s G7-related meetings as chairman, with the aim of incorporating it into the summit declaration at the summit to be held in Hiroshima in May. With the impact of cryptocurrencies on the financial system set to be discussed at the upcoming G20 finance ministers and central bank governors meeting in Washington, D.C., the future of the industry remains uncertain. However, we hope that these international efforts will lay the foundation for a safer, more stable crypto landscape.
