G7 Countries Will Implement Strict Rules For Crypto Industry

G7 members will look for crypto rules. (Photo; Doc. Radio Free Europe)

JAKARTA - The presence of cryptocurrencies as a new form of digital assets continues to attract the attention of the world community. Currently, most business transactions and even financial transactions are carried out online by utilizing blockchain technology. Although the popularity of crypto is increasing, there are no adequate regulations in many countries to oversee the cryptocurrency industry.

Therefore, the G7, the international political forum consisting of seven of the world's largest economies, plans to implement strict rules on the cryptocurrency industry after a series of recent negative events.

Canada, France, Germany, Italy, Japan, Britain, and the United States are united to design global regulations suitable for the cryptocurrency sector. Consumer protection and increased business transparency are the main focus of the upcoming legislation.

The G7 believes the industry needs swift action, blaming the lack of good governance and strict oversight as the main reason behind FTX's failure last November.

The G7 also voiced their concern over the surprising fall of banking in the US. They will discuss future legislative details at a meeting of finance ministers and central banks in mid-May and at another meeting in Washington the following month.

A complete version of the law is expected to be available in July this year. The G7 also highlighted the failure of UST's algorithmic Terraform, LUNA, and stablecoin tokens.

They argue that the failure was in May and the market failure that followed should be a "warning" to implement appropriate rules in the industry. They hope global regulators can work together and implement rules that will ensure maximum protection for investors.