G7 crypto regulatory measures in 2022
The crypto market has been going through a dreadful winter since the beginning of the year. But amid this, it is also experiencing a global wave of regulatory changes. The governments that were rather dubious about digital assets are now looking for ways to regulate them. And some are even launching their fiat currency-pegged tokens to ensure stability in the market.
The G7 crypto regulations are notable in this regard. Recently, after the Terra LUNA fiasco, the Group of Seven countries’ finance heads held a meeting to discuss the situation. The meeting established that “consistent and comprehensive regulation” has become essential for the world economy. For this reason, they also urged the Financial Stability Board (FSB) to take swift measures to implement regulations.
Meanwhile, in July, FSB revealed the course of action it will take to mitigate the risks for investors. It highlighted digital asset volatility and structural vulnerabilities and how it affects the traditional market.
Prompt initiatives by G7 crypto regulators
Among the G7 countries, the United Kingdom and the United States have seen the most developments. In the US, where the SEC continues to probe digital asset firms for illegal activities, the Biden administration has introduced [a new regulatory act](https://www.gillibrand.senate.gov/imo/media/doc/Lummis-Gillibrand Section-by-Section %5bFinal%5d.pdf). It establishes the definition of cryptocurrency commodities and securities. Also, it elaborated the role of SEC and CFTC and put forth a legal framework for DAOs, exchanges, and brokerages.
As the UK is looking to become a global crypto hub, it has advanced crypto regulations and several related policies. FCA has continued its work for registering crypto asset firms in the UK. The country is also exploring the possibility of a central bank digital currency (CBDC), which will be pegged to the pound. Meanwhile, it might also get a new regulatory framework for stablecoins in September.
Moreover, the UK and US regulators are working together to introduce better policies in the entire region. On the other hand, in Canada, cryptocurrencies are legal, and firms providing related services are required to register themselves. The authorities that deal with digital assets are FinTRAC and CSA. Recently, CSA has made the pre-registration undertaking mandatory for firms.
Germany is another leading country in the crypto space. It is only behind the US in the global rankings. It is a crypto-friendly country, which introduced an almost no-tax policy on cryptocurrency trading. Also, BaFin, the country’s Financial Supervisory Authority, has registered various cryptocurrency firms.
As the EU approved the MiCA regulations, France became the first EU country to regularise digital assets. It provides the registration as Digital Asset Service Provider (DASP). Binance was the first exchange to get the registration.
Italy has also advanced the G7 crypto regulations. In 2022, Italy registered numerous crypto asset firms like Coinbase. Crypto.com, and Binance. Moreover, it has also announced $46mn for supporting blockchain projects.
Lastly, the Japanese self-regulatory authority (JVCEA) is also working towards this goal. However, its efforts have not been as remarkable for virtual asset regularisation. Nonetheless, Japan’s Ministry of Economy wants to make policies for web3-related businesses.
Crypto regulations in other countries
Many other countries also have been proactive in regularising the virtual asset market. Australia, South Africa, New Zealand, Russia, and South Korea are notable names among these countries. Meanwhile, China remains the country which is relatively cold toward cryptocurrency adoption.
Author: Wasay Ali
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