SI - G-7 said to promote tougher crypto rules amid global banking drama
2023-03-27 10:06:27 ET
The international Group of Seven (G-7) will push for tighter global regulations of the cryptocurrency space in an effort to boost business transparency and consumer protections, according to a recent Kyodo News report that cited officials with knowledge of the plan.
Talks on regulating crypto globally is set to accelerate in the runup to a mid-May gathering of financial ministers and central bankers, the report said, adding that G-7 members will state their combined efforts to toughen crypto rules in a leaders' declaration at this year's summit in Hiroshima, Japan.
The G-7 members consist of the U.K., U.S., Canada, France, Japan, Italy and Germany. Japan was said to have one of the toughest crypto frameworks, with customers in FTX's ( FTT-USD ) Japanese unit being some of the first to recover funds from the failed crypto exchange.
After the collapse of Bahamas-based FTX ( FTT-USD ) late last year, and more recently, the failures of Silicon Valley Bank ( SIVB ) and crypto-friendly lenders Silvergate Capital ( SI ) and Signature Bank ( SBNY ), regulators have prioritized scrutinizing the crypto industry. The banking drama has been experienced globally in the wake of the shotgun marriage of Swiss lenders UBS Group ( UBS ) and Credit Suisse ( CS ) as well as jitters surrounding Germany's Deutsche Bank ( DB ).
While crypto rules currently vary by country, the G-7 is seeking to take the lead in creating an arguably much-needed global regulatory framework, Kyodo noted.
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G-7 said to promote tougher crypto rules amid global banking drama