G7 Financial Officers Call on Financial Stability Board to Step Up Crypto Regulation – Report

Top financial officials from the Group of Seven (G7) largest advanced industrial economies have called on the Financial Stability Board to accelerate regulation of crypto assets, Reuters reported Thursday, citing a copy of a communiqué it obtained. Officials from Canada, France, Germany, Italy, Japan, the United Kingdom and the United States met in Koenigswinter, Germany, after a meeting of G7 foreign ministers earlier this week.

“In light of the recent turmoil in the crypto asset market, the G7 urges the FSB (Financial Stability Board)…to promote the rapid development and implementation of consistent and comprehensive regulation,”

The turmoil referenced was the de-pegging of the TerraUSD (UST) stablecoin that started on May 8 and sent shockwaves through the crypto world. There were warning signs that G7 ministers would discuss the issue at their meeting.

Bank of France Governor François Villeroy de Galhau said at the Emerging Market Forum in Paris on Tuesday: “Crypto-assets can disrupt the international financial system if they are not regulated, controlled and interoperable in a consistent and appropriate manner across jurisdictions. to be.” He added: “We will probably […] discuss these issues among many others at the G7 meeting in Germany this week.”

The Financial Stability Board is an advisory body affiliated with the Bank of International Settlements. The members represent institutions from 24 countries and various international organizations. It has no enforcement powers.

Related: Global Financial Regulator Wants More Data to Measure Bitcoin’s Risks

The collapse of the Terra algorithmic stablecoin has impacted lawmakers around the world. US Treasury Secretary Janet Yellen reiterated her previous calls for a “consistent federal framework” for stablecoins in a Senate Banking Committee on May 10, saying the situation “simply illustrates that this is a fast-growing product and there are risks involved.” to financial stability and we need a framework that is appropriate.”

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