G7 finance ministers and central bankers have called for swift and comprehensive regulation of crypto assets. The G7 decision comes after the recent crypto market turmoil, including the collapse of cryptocurrencies LUNA and UST.
G7 countries call for swift, comprehensive regulation of crypto assets
Finance ministers and central bank governors from the industrialized Group of Seven (G7) nations met May 18-20 in Bonn and Koenigswinter, Germany.
Topics they discussed included the recent market turmoil and the regulation of crypto assets following the collapse of cryptocurrency terra (LUNA) and algorithmic stablecoin terrausd (UST).
“The G7 supports the work of the Financial Stability Board (FSB) to monitor and address financial stability risks posed by all forms of cryptoassets, and welcomes increased global cooperation to address regulatory issues related to the use of cryptoassets, including cross-border payments,” according to A communiqué released Friday summarizing key decisions by fiscal leaders.
The G7 finance minister added:
In light of the recent turmoil in the cryptoasset market, the G7 urges the FSB…to promote the rapid development and implementation of consistent and comprehensive regulation of cryptoasset issuers and service providers.
The communique further detailed that the FSB will “coordinate closely with international standard-setters” on crypto regulation “with a view to maintaining crypto-assets, including stablecoins, to the same standards as the rest of the financial system.”
“In particular, the G7 called for the swift implementation of the Financial Action Task Force’s (FATF) ‘travel rule’ and enhanced disclosure and regulatory reporting, for example, on reserve assets backing stablecoins,” the financial leaders continued, adding road:
We reiterate that no global stablecoin project should commence operations until relevant legal, regulatory and supervisory requirements have been adequately met through proper design and compliance with applicable standards.
The communique concluded: “The G7 remains committed to high regulatory standards for global stablecoins, following the principles of same activity, same risk, same regulation.”
Following the collapse of LUNA and UST, many countries independently called for urgent regulation of crypto assets, especially stablecoins.
In the U.S., Treasury Secretary Janet Yellen told Congress last week that regulating stablecoins is important and urgent.she mention An unknown fall.The British government also reiterate This week pledged to regulate stablecoins.
What do you think of the G7 finance chief’s call for swift and comprehensive regulation of crypto assets? Let us know in the comments section below.
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