G7 countries will tighten regulation of the cryptocurrency market to protect their owners

The need for the adoption of common standards for all digital assets, world leaders thought after a series of bankruptcies of cryptocurrency exchanges and banks that are actively working with tokens. These decisions will be announced in May, informs Kyodo agency.

G7 countries will tighten regulation of the cryptocurrency market to protect their owners

Photo: pixabay.com

The “Big Seven” intends to establish new “rules of the game” in the crypto asset market. The reason for this decision was a series of bankruptcies – first of the large cryptocurrency exchange FTX, and then of Silicon Valley and Signature Bank banks, which specialized in technology startups and servicing crypto clients.

It is expected that the G7 will announce these changes at the next summit of the organization, which will be held in May in Japanese Hiroshima.

The main difficulty in developing common standards for regulating this market lies in the specifics of different virtual currencies. Some of them are tied to the value of real assets, but the main volume of tokens is subject to high volatility and speculative fluctuations.

At the same time, among the members of the G7, only Japan has established clear rules for the operation of the cryptocurrency market. In other countries, the legal status and regulation of the circulation of digital currencies differ significantly. For example, Canada and the US still apply normal financial rules to them.

During a hearing before the Financial Services Committee of the U.S. House of Representatives
reasons FTX bankruptcies were cited as poor management and inexperienced leaders.

OL previously also
wrotethat after the bankruptcy of Silicon Valley in the US found almost 200 banks with similar risks.

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