G7 finance ministers and central bank governors have called for swift and comprehensive regulation of crypto assets. The G7 decision followed recent crypto market turmoil, including the collapse of the LUNA and UST cryptocurrencies.

G7 countries call for swift and comprehensive regulation of crypto assets

Finance ministers and central bank governors from the Group of Seven (G7) industrialized countries met in Bonn and Königswinter, Germany, from May 18-20.

Among the topics they discussed was the regulation of crypto assets following the recent market turmoil and collapse of the terra cryptocurrency (LUNA) and the terrausd (UST) algorithmic stablecoin.

“The 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 further global cooperation to address regulatory issues associated with the use of crypto assets, including cross. -border payments”, according to the statement summarizing the key decisions of the financial leaders, published on Friday.

The G7 finance chiefs added:

In light of the recent turmoil in the crypto asset market, the G7 urges the FSB… to move forward with the rapid 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 statement details.

“In particular, the G7 calls for swift implementation of the Financial Action Task Force’s (FATF) ‘travel rule’ and increased disclosure and regulatory reporting, for example, in regards to reserve assets backing currencies. stable,” the finance leaders continued, adding:

We reaffirm that no global stablecoin project should begin operations until it adequately addresses relevant legal, regulatory and supervisory requirements through proper design and adherence to applicable standards.

“The G7 remains committed to high regulatory standards for global stablecoins, following the principle of same activity, same risk, same regulation,” the statement concludes.

Following the collapse of LUNA and UST, several countries have independently called for urgent regulation of crypto assets, particularly stablecoins.

In the US, Treasury Secretary Janet Yellen told Congress last week that regulating stablecoins is important and urgent. She mentioned the terrausd drop by name. The UK government also reaffirmed his commitment to regulate stablecoins this week.

What do you think about the G7 finance chiefs calling for quick and comprehensive regulation of crypto assets? Let us know in the comments section.

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