Group of Seven finance ministers and central bank governors have called for rapid and comprehensive regulation of crypto assets. The G7 decision came in the wake of recent turmoil in the cryptocurrency market, including the collapse of cryptocurrencies LUNA and UST.
G7 countries demand rapid and comprehensive regulation of crypto assets
Finance ministers and central bank governors from the Group of Seven industrialized nations met in Bonn and Königswinter, Germany, on May 18-20.
Among the topics they discussed was the regulation of crypto assets in the wake of the recent market turmoil and the collapse of cryptocurrency Terra (LUNA) and algorithmic stablecoin Terrausd (UST).
“G7 supports the work of the Financial Stability Board (FSB) to monitor and address financial stability risks arising from all forms of crypto assets, and welcomes increased global cooperation to address regulatory issues associated with the use of crypto assets, including – border payments,” according to the statement summarizing key decisions of financial leaders. , which was published on Friday.
The G7 financial chiefs added:
In light of the recent turmoil in the crypto-asset market, the Group of Seven urges the FSB … to move forward with the rapid development and implementation of a consistent and comprehensive regulation of crypto-asset issuers and service providers.
The FSB will work “in close coordination with international standard-setters” on crypto regulation “with the aim of holding crypto assets, including stablecoins, in accordance with standards for the rest of the financial system,” according to the statement in more detail.
“In particular, the G7 calls for rapid implementation of the Financial Action Task Force (FATF) travel rule and stronger disclosure and regulatory reporting, for example, regarding reserve assets that support stablecoins,” the financial leaders continued, adding:
We reiterate that no globally stable currency project should go into operation until it adequately addresses the relevant legal, regulatory and supervisory requirements through appropriate design and adherence to applicable standards.
The statement concludes that “the G7 remains committed to high regulatory standards for global stablecoins, on the principle of same activity, same risk, same regulation.”
After the collapse of LUNA and UST, a number of countries independently called for urgent regulation of crypto assets, especially stablecoins.
In the US, Treasury Secretary Janet Yellen told Congress last week that it is important and urgent to regulate stablecoins. She mentioned the fall of Terrassed by name. The UK government also confirmed its commitment to regulating stablecoins this week.
What do you think about the G7’s call for rapid and comprehensive regulation of crypto assets? Let us know in the comments section below.
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