The G7 countries are speeding up the discussions regarding digital currency regulations ahead of a meeting of the Group’s central bank governors and Finance Ministers

The global Group of Seven (G7) is moving toward a unified framework for the regulation of digital currencies, as per a report from Kyodo News.

The G7 countries are speeding up the discussions regarding digital currency regulations ahead of a meeting of the Group’s central bank governors and Finance Ministers. The summit is set to take place in Japan only days after the conclusion of the 49th G7 summit in May.

The renewed effort for digital currency regulation among the Group’s member countries follows a number of large-scale collapses in the crypto sector. The U.S., especially, seems to be the hardest hit because of the unanticipated bank failures of Silicon Valley Bank (SVB) and Signature Bank, entities with a number of digital asset service providers as clients.

Other members of the Group were also impacted by the unforeseen collapse of FTX, with France, Germany, and Italy suffering their share of the losses. In February, the Japanese arm of the crypto currency exchange revealed that customers could begin withdrawing their funds, noting that the funds will not be intertwined in the U.S. bankruptcy proceedings.

Out of G7 countries, only Japan has the semblance of an appropriate digital currency legal framework, leading to a plan to permit domestic investors to trade foreign stablecoins on the country’s exchanges. The U.S. and Canada are applying current banking and securities regulations to the digital currency industry with mixed results.

According to Kyodo News, the International Monetary Fund (IMF) is lending its voice to G7 nations looking to pass a legal framework for digital currencies. Earlier declarations from the International Monetary Fund have apparently cautioned countries against granting digital currencies with the status of legal tender and the risks of cryptoization of their local economies.

Besides the International Monetary Fund, the Financial Stability Board (FSB) is also lending its voice after the issuance of proposals urging regulators to treat digital currencies like banks and other financial institutions. With the EU’s Markets in Crypto Assets (MiCA) law approaching implementation, France, Italy, and Germany will have a legal framework to regulate the asset class.