G7 to push for tighter global cryptocurrency regulations amid concern about risks after collapse of FTX
- Members will accelerate the pace of discussions in mid-May, amid lingering concern about potential risks to the world’s financial system
- The plan follows the collapse of the major cryptocurrency exchange FTX in November, which laid bare the poor governance of the industry
The Group of Seven major industrialised democracies will promote tougher regulations of the cryptocurrency sector, aiming to increase business transparency and consumer protections, officials with knowledge of the plan said on Sunday.
The G7 will accelerate the pace of related discussions toward a meeting of finance ministers and central bankers in mid-May, just days before Japanese Prime Minister Fumio Kishida hosts this year’s summit in Hiroshima, according to the officials.
Amid lingering concern about potential risks to the global financial system posed by crypto assets, they said Japan and the other members – Britain, Canada, France, Germany, Italy and the United States, as well as the European Union – are seeking to state their collective efforts in a leaders’ declaration.
The plan follows the collapse of the major cryptocurrency exchange FTX in November, which has laid bare the poor governance of the industry and sent shock waves through financial markets.
It also comes as investors have been rattled by two sudden bank failures this month in the United States. The two were Silicon Valley Bank, which specialised in dealing with technology start-ups, and Signature Bank, which served crypto clients.