G7 Countries Calls For Swift Regulation of crypto assets

Key Takeaways:

  • The draft communique noted that G7 remains committed to high regulatory standards for global stablecoins.
  • G7 countries met May18-20 in Germany.

 G7 countries, during its meeting on 19th May, had called for the swift and comprehensive regulation of cryptocurrencies, according to a draft communique.

“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,” finance ministers and central bankers part of the Group of Seven industrialized nations said in the document. Their call for the regulation of crypto-assets comes amidst the recent market turmoil following the unprecedented collapse of cryptocurrency terra (LUNA) and algorithmic stablecoin terrausd.

“The G7 supports work by the 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 published communique which summarized the key decisions, reads.

The communique also noted that FSB would 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 concluded by noting that the G7 remains highly committed to high regulatory standards for global stablecoins, following the principle of the same risk, same activity, and same regulation.

Due to the recent market turmoil, many countries are now independently calling for urgent regulation of crypto assets. In the United States, Treasury Secretary Janet Yellen told Congress earlier this month that it is important and urgent to regulate stablecoins. The U.K. government has also recently reaffirmed its commitment to regulate stablecoins this week.

 The G7 leaders met in Koenigswinter, near Bonn (Germany), from May 18-20. The Group of Seven (G7) leading economies also agreed during its recent meeting to provide $19.8billion in economic aid to Ukraine in its fight against Russia’s invasion.

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Saniya Raahath

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