Following the recent cryptocurrency crash of Terra Network which involved Luna and the UST crackdown, the G7 financial leaders have called for the regulation of cryptocurrency assets. With the crash of the UST, which was a stable coin, people are calling for the regulation of cryptocurrencies and most importantly, stable coins.
The G7 countries, a group of seven countries, are an organization of the world’s seven most significant advances that dominate global trade and the international financial system. The G7 countries are Canada, France, Germany, the United Kingdom, the United States, Japan, and Italy. As of writing, you can buy Ethereum on the Gate.io exchange at $1950.35 and the token is down by 3.80% due to the bearish market for some weeks now. On the Gate.io exchange, you can buy, sell and trade numerous ETH trading pairs.
The G7 Financial Ministers and Central Banks Governors, met on the Petersberg on 18-20 May 2022, joined by the Heads of International Monetary Funds (IMF), World Bank Group, Organization For Economic Cooperation and Development (OECD), and Financial Stability Board (FSB). The issues addressed during the meeting include support for Ukraine, macroeconomic stability, global health, digitalization, climate and environment, financial market policies and sustainability, and international financial architecture.
On the issue of digitalization, crypto assets regulation was addressed. It was highlighted during the conference that digital innovation in payments is a key driver of economic progress and development, notably through faster, cheaper, more transparent, and more inclusive cross-border payment services. The opportunities and implications of the Central Bank Digital Currencies (CBDCs) and their potential role in future payment were also mentioned. In October 2021, the Public Policy Principles for Retail CBDC were agreed upon.
It was reiterated that the CBDC should be well-grounded in transparency, the rule of law, sound economic governance, cyber security, and data protection. The CBDC was also encouraged to try out cross-border functionality which can have great potential to create innovation and open new dimensions to meet users’ demand for more effective international payments. International cooperation will definitely be very important to understand and minimize any negative spillovers to the international monetary and financial system.
Moreover, the G7 agrees that the work by the Financial Stability Board (FSB) which involves monitoring and addressing financial stability risks arising from all forms of crypto-assets is supported by them. The regulation of crypto-assets and cross-border payment is also supported by the G7. The FSB was also urged in light of the recent crash of the Terra network, to work with the international standard-setters, to advance the fast development and implementation of consistent and comprehensive regulation of crypto-assets issuers and service providers, with a view to holding crypto-assets, including stablecoins, to the same standards as the rest of the financial system. The G7 called for rapid implementation of the Financial Action Task Force (FATF) ‘travel rule’ and stronger disclosure and regulatory reporting. It was addressed that no global stablecoins project should begin operation until it has addressed legal, regulatory, and oversight requirements through appropriate design and by adhering to the applicable standards. You can start trading now at Gate.io exchange on the different stable coins that have passed through these processes. The G7 noted that they are committed to high regulatory standards for global stablecoins, following the principle of the same activity, same risk, and same regulation.
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