G7 Finance Leaders advocated for fast and Comprehensive Regulations for crypto

Following the recent market crisis and the collapse of cryptocurrency terra (LUNA) and algorithmic stablecoin terrausd, one of the things they discussed was the regulation of crypto-assets (UST).

The G7 finance ministers and central bank governors have advocated for swift and comprehensive regulation of crypto assets.

Fast and extensively

Crypto assets must be regulated fast and extensively, according to the G7 countries.

On May 18–20, finance ministers and central bank governors from the Group of Seven (G7) industrialized nations gathered in Bonn and Königswinter, Germany.

The G7 decision follows recent cryptocurrency market volatility, which saw the cryptocurrencies LUNA and UST fall.

“The G7 welcomes enhanced global collaboration to resolve regulatory concerns related to the usage of crypto-assets, notably in cross-border payments,” read the communiqué summarizing the finance chiefs’ major decisions.

According to the communiqué, the FSB would work on crypto regulation “in close collaboration with international standard-setters” with the goal of bringing crypto-assets, especially stablecoins, into line with the rest of the financial system.

“The G7 recommends the FATF’s ‘travel rule’ to be adopted as soon as possible, as well as enhanced disclosure and regulatory reporting, for example, on reserve assets behind stablecoins,” the finance ministers said.

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No global stablecoin project should go live until

We reiterate that no global stablecoin project should go live until it meets all necessary legal, regulatory, and supervision criteria through proper design and respect to applicable standards.

“The G7 remains committed to high regulatory standards for global stablecoins, based on the premise of same activity, same risk, same regulation,” the communique reads.

Following the fall of LUNA and UST, a number of nations have separately advocated for the regulation of crypto assets, particularly stablecoins.

Last week, Treasury Secretary Janet Yellen told Congress that stablecoin regulation is both required and urgent.

Terrausd’s fall was expressly mentioned. The UK government said this week that stablecoins will be regulated.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing