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G7 finance officials urge Financial Stability Board to step up crypto regulation – report

Top financial officials of the Group of Seven (G7) of the largest advanced industrial nations have called on the Financial Stability Board to speed up regulation of crypto assets, Reuters reported on Thursday, citing a copy of a communiqué it received. The 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 in the week.

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

The turbulence mentioned was the de-pegging of the stablecoin TerraUSD (UST) that started on May 8th and sent shockwaves across the crypto-sphere. There were signs that G7 ministers would address the issue at their meeting.

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

The Financial Stability Board is an advisory body to the Bank for International Settlements. Its members represent institutions from 24 countries and several international organizations. It has no enforcement powers.

Related: Global financial regulator wants more data to measure Bitcoin’s risks

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