G7 central bank governors and finance ministers demand a rapid and thorough regulation of cryptocurrency assets. Following the crypto market turmoil that has resulted in the collapse of cryptocurrencies LUNA, UST and other cryptocurrencies, the G7 decided to take swift action.
G7 Countries Demand Swift and Comprehensive Regulation of Crypto Assets
The finance ministers and central bank governors from the Group of Seven (G7) industrialized nations convened in Bonn and Königswinter, Germany, on May 18–20.
The regulation of crypto assets after the recent market turmoil (LUNA), and collapse of cryptocurrency terrausd, were some of the subjects they addressed.
“The G7 supports work by the Financial Stability Board (FSB) to monitor and address financial stability risks arising from all forms of crypto-assets, and welcomes increasing global cooperation to address regulatory issues associated with the use of crypto-assets, including in cross-border payments,” according to the communique summarizing the finance leaders’ key decisions, published Friday.
G7 finance chiefs added the following:
In light of the recent turmoil in the crypto-asset market, the G7 urges the FSB … to advance the swift development and implementation of 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 a view to holding crypto-assets, including stablecoins, to the same standards as the rest of the financial system,” the communique further details.
“In particular, the G7 calls for rapid implementation of the Financial Action Task Force (FATF) ‘travel rule’ and stronger disclosure and regulatory reporting, for instance, as regards reserve assets backing stablecoins,” the finance leaders continued, adding:
Reaffirming that global stablecoin projects should not be launched until they meet all legal, regulatory, and oversight requirements by using appropriate design and adhering with applicable standards is our recommendation.
“The G7 remains committed to high regulatory standards for global stablecoins, following the principle of same activity, same risk, same regulation,” the communique concludes.
A variety of countries demanded an immediate regulation of crypto assets following the fall of UST and LUNA.
Last week, Janet Yellen, U.S. Treasury Secretary, told Congress that regulation of stablecoins is urgent and important. Janet Yellen mentioned by name the collapse of Terrausd. Also, this week the U.K. government reaffirmed their commitment to stablecoin regulation.
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