G7 Finance Ministers Have Called For a Quickening of Global Crypto Regulations Following the Collapse of the UST

G7 Finance Ministers have called for a quickening of global crypto regulations

Finance ministers from G7 large developed economies are set to call for faster global crypto regulations in the wake of the collapse of the TerraUSD (UST) stablecoin last week, according to Reuters.

“In light of the recent turmoil in the crypto-asset market, the G7 urges the FSB (Financial Stability Board) … to advance the swift development and implementation of consistent and comprehensive regulation,” the ministers wrote in a draft communique seen by Reuters.

The FSB, a Basel-based international organization responsible for many of the post-2008 financial regulations, had previously promised a report on global stablecoin regulation, supervision, and monitoring in October of this year. Klaas Knot, the FSB’s chief, has already offered to draft a crypto regulation that would address topics like financial stability and investor safety.

Last week’s instability in crypto markets, which saw the Terra asset, which was reportedly worth $1, drop to as low as 7 cents and Tether’s USDT lose its peg, has only fueled cries for further Last week’s instability in crypto markets, which saw the Terra asset, which was reportedly worth $1, drop to as low as 7 cents and Tether’s USDT lose its peg, has only fueled cries for further regulation.

In a speech delivered Monday in Paris, French central bank Governor François Villeroy de Galhau claimed that stablecoins are “misnamed” and “possibly very unstable.” To prevent destabilizing the international financial system, he said crypto assets needed to be monitored and interoperable across jurisdictions.

Mairead McGuinness, the European Union’s financial services commissioner, has called for a worldwide accord on crypto to safeguard investors and restrict the environmental effect of bitcoin-style proof of work technology as part of the EU’s MiCA crypto legislation.

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