The Group of Seven (G7) major industrialized democracies are reportedly planning to promote tougher regulations of the cryptocurrency sector during the 49th G7 summit, which is scheduled for May 2023 and will take place in Hiroshima, Japan. This move comes in response to concerns about potential risks to the global financial system posed by crypto assets.

According to anonymous officials with knowledge of the plan, the goal is to increase transparency and consumer protections. The G7 is hoping to take the lead in formulating global standards for virtual assets. Members such as Britain, Canada, France, Germany, Italy, Japan, the United States, and the European Union are seeking to state their collective efforts in a leaders’ declaration.

While the legal status of virtual assets and rules about them vary by country, the G7 is seeking to establish global standards. The Financial Stability Board (FSB), headquartered in Switzerland, released recommendations in October last year for creating a regulatory framework, stating that crypto assets should also be subject to regulations for commercial bank activities. The FSB plans to announce its final version of the framework in July this year.

The International Monetary Fund (IMF) has also outlined key elements for each country to consider in the development of comprehensive and coordinated rules following the spread of crypto. Among other guidelines, IMF directors have generally agreed that crypto assets should not be granted official currency or legal tender status.