The G7 Finance Ministers and central bank representatives have asked for the regulation of crypto assets to be fast and comprehensive. The group of seven choices came in the aftermath of recent crypto market disturbances, including the breakdown of digital currencies Terra and TerraUSD.
From May 18–20, finance ministers and central bank representatives from the Group of Seven industrialised countries (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States) assembled in Bonn and Königswinter, Germany.
Finance leaders outline the key conclusions in a Friday official statement:
“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.”
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,” as per the further official statement.
Furthermore, the G7 Finance Chiefs stated:
“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 finance leaders stated that:
“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 stablecoin.”
The official statement conclude:
“The G7 remains committed to high regulatory standards for global stablecoins, following the principle of same activity, same risk, same regulation.”
Following the demise of LUNA and UST, different states have independently demanded a vital guideline on crypto resources, especially stablecoins.
Read more:
- Bank of Japan wants G7 to pace up for regulating crypto
- Global financial regulators planning to discuss about crypto at G7: Report
