By George Ward
The conversation about the global plan will be expedited before the meeting in May, where central bankers and finance ministers will be present. Reports suggest that officials aware of the plan have indicated that the G-7 (an informal group of the seven most advanced economies worldwide) intends to strengthen global cryptocurrency regulation.
G-7 Expedites Discussion On Crypto Regulation
They will focus on safeguarding consumer protection and enhancing the company’s transparency. The G-7 is expediting its discussions regarding cryptocurrency regulation ahead of the gathering of central bankers and finance ministers scheduled for May.
The reports claim that the upcoming summit in Hiroshima, hosted by Prime Minister of Japan – Fumio Kishida, would feature a leaders’ disclosure. During the disclosure, G-7 members will outline their commitment to implementing stricter cryptocurrency policies.
FTX Japan’s clients were among the earliest recipients of refunds from the bankrupt cryptocurrency exchange, thanks to Japan’s already-stringent regulatory framework for cryptocurrency. Meanwhile, regulatory authorities worldwide strive for a universal cryptocurrency regulation agreement.
Last October, America’s financial stability board proposed guidelines for global cryptocurrency regulations. Last month, the G-20 community (under its Indian presidency) also discussed the risks associated with cryptocurrency.
The discussion set to conclude in September 2023 will involve the presentation of an analysis paper containing regulations concerning cryptocurrency worldwide. Regulators have placed more attention on cryptocurrency following last year’s shutdown of the foremost crypto exchange, FTX, and the setbacks experienced by Signature Bank, Silvergate Bank, and Silicon Valley Bank.
Nigerians’ Crypto Use Surges To Record High
Meanwhile, there has been a notable increase in crypto usage in several nations, especially Nigeria, despite the strong regulatory focus on the crypto industry. Binance data shows that there has been an increase in peer-to-peer trading in the cryptocurrency market following the Central Bank of Nigeria’s directive to limit cash in circulation.
The government’s limited fiat currency supply has also increased demand for decentralized currencies like BTC. According to the IMF, small businesses, transportation firms, farmers, and individuals who rely on the informal sector of Nigeria, which makes up over 50% of the country’s gross domestic product (GDP), have suffered the most.
For context, that GDP figure is greater than the Gross Domestic Product of Ukraine, which is roughly 220 billion dollars.