Senior finance officials from the largest advanced industrial economies in the Group of Seven (G7) have called on the Financial Stability Board to speed up regulation of crypto-assets, Reuters reported on Thursday, citing a copy of a statement it had obtained . Officials from Canada, France, Germany, Italy, Japan, the United Kingdom and the United States met in Koenigswinter, Germany, following a meeting of Ministers of G7 Foreign Affairs 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 coherent and comprehensive regulation.
The turmoil referred to was the unpegging of the stablecoin TerraUSD (UST) which began on May 8 and sent shockwaves throughout the crypto sphere. There were early signs that G7 ministers would address the issue at their meeting.
Banque de France Governor François Villeroy de Galhau, speaking at the Emerging Markets Forum in Paris on Tuesday, said: “Crypto-assets could disrupt the international financial system if they are not regulated, supervised and consistently and appropriately interoperable across jurisdictions”. He added: “We will probably […] discuss these and many other issues at the G7 meeting in Germany this week.
The Financial Stability Board is an advisory body associated with the Bank for International Settlements. Its members represent institutions from 24 countries and several international organizations. It has no enforcement power.
Related: Global Financial Regulator Wants More Data to Measure Bitcoin Risk
The collapse of the algorithmic stablecoin Terra has had repercussions in legislatures around the world. U.S. Treasury Secretary Janet Yellen reiterated her previous calls for a “coherent federal framework” on stablecoins at a May 10 Senate Banking Committee, saying the situation “just illustrates that it This is a fast growing product and there are risks to financial stability and we need an appropriate framework.