G7 finance officials call on FSB to strengthen cryptocurrency regulation

The top finance official of the largest advanced industrial economy in the Group of Seven (G7) nations has called on the Financial Stability Board to speed up regulation of crypto assets, Reuters reported on Thursday, citing a copy of a communiqué obtained by it. Officials from Canada, France, Germany, Italy, Japan, the United Kingdom and the United States met in Koenigswinter, Germany, after attending a meeting of G7 foreign ministers earlier this week.

“Given the recent turmoil in crypto asset markets, the G7 urges the Financial Stability Board (FSB) to … move forward with the rapid development and implementation of consistent and comprehensive regulation.”

The so-called turmoil refers to the decoupling of the TerraUSD (UST) stablecoin that began on May 8, sending shockwaves across the crypto space. There are warning signs that G7 ministers will discuss the issue at their meeting.

“Crypto-assets in different jurisdictions could disrupt the international financial system if they are not regulated and interoperable in a consistent and appropriate manner,” Bank of France Governor François Villeroy de Galhau said Tuesday at the Emerging Market Forum in Paris. He added: "We will probably ... discuss these issues together at the G7 meeting in Germany this week."

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

The debacle of the Terra algorithmic stablecoin has had ramifications for legislatures around the world. U.S. Treasury Secretary Janet Yellen reiterated her previous call before the Senate Banking Committee on May 10 for a "coherent federal framework" for stablecoins, saying the situation "just goes to show that this is a rapidly growing industry." products, there are risks to financial stability and we need a proper framework."

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