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Global Financial Regulators to Discuss Crypto at G7: Report

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Central bank governors and finance ministers in the Group of Seven, or G7, are reportedly planning to discuss cryptocurrency regulation.

According to a Reuters report Tuesday, Bank of France Governor François Villeroy de Galhau said representatives from the United States, Canada, Japan, Germany, France, Italy and the United Kingdom are likely to discuss issues related to a regulatory framework for cryptocurrencies will be meeting in the German cities of Bonn and Königswinter from Wednesday. Villeroy reportedly said that the recent crypto market volatility — likely related to some stablecoins detaching from the US dollar and major token prices falling — has been a “wake-up call” for global regulators.

“Europe has paved the way with MiCA,” Villeroy said at an emerging markets conference in Paris, citing European Parliament legislation aimed at creating a regulatory framework for crypto. “We probably will […] discuss these and many other issues this week at the G7 meeting in Germany.”

The governor of the Bank of France added on Tuesday in a speech at the Emerging Markets Forum in Paris:

“Crypto assets could disrupt the international financial system if they are not regulated, supervised and interoperable in a consistent and appropriate manner across jurisdictions.”

According to the G7 website, finance ministers and central bank governors will meet in Germany on May 18-20 to discuss measures related to the recovery and financial stability of member states due to the COVID-19 pandemic and “to put the upcoming transformation processes in context shape digitization and climate neutrality” and economic policy at the International Monetary Fund. The group issued guidelines on the possible launch of central bank digital currencies in 2021 and reportedly warned that certain stablecoins could threaten the global financial system in 2019.

Related: The Bank of Japan officially calls on the G7 countries to adopt joint crypto regulations

Villeroy has previously urged EU officials to develop a regulatory framework amid crypto’s growing role in regional markets, saying they only have “a year or two” to act. Ahead of his election victory in France, Emmanuel Macron said he supports the European Parliament’s recent efforts to regulate crypto – including MiCA – adding that no rules should hamper innovation.