May 23, 2022
By Murtuza Merchant
The G7 finance ministers and central bank governors have called for a swift and comprehensive regulation of crypto assets.
The G7 decision followed the recent crypto market turmoil, including the collapse of cryptocurrencies LUNA and UST.
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.
Among the topics they discussed was the regulation of crypto-assets following the recent market turmoil and the collapse of cryptocurrency terra (LUNA) and algorithmic stablecoin Terrausd (UST).
“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.
They also urged 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 said, adding that no global stablecoin project should begin operation until it adequately addresses relevant legal, regulatory and oversight requirements through appropriate design and by adhering to applicable standards.
About the author
Murtuza Merchant is a senior journalist and an avid follower of blockchain and cryptocurrencies.