G7 Keeps Pushing for Crypto Regulation, Here’s What’s Already Happening

Source: AdobeStock / Destina

The finance ministers and central bankers of the Group of Seven (G7), which comprises the world’s most advanced economies, have once again called for the rapid introduction of comprehensive regulations of cryptoassets in the aftermath of the recent UST stablecoin crash.

Per a May 20 G7 Finance Ministers and Central Bank Governors´ Petersberg Communiqué, this regulation of cryptoasset issuers and service providers should be done with a view to holding crypto, including stablecoins, to “the same standards as the rest of the financial system.” 

The G7 supports the Financial Stability Board (FSB)’s work to “monitor and address financial stability risks arising from all forms of cryptoassets,” they said, while welcoming increasing global cooperation in order to address regulatory issues associated with the use of crypto, including in cross-border payments, said the document.

The G7, they added, particularly calls for fast implementation of the Financial Action Task Force (FATF) ‘travel rule’, as well as for stronger disclosure and regulatory reporting – “for instance, as regards reserve assets backing stablecoins,” stated the communiqué, adding:

“We reaffirm that no global stablecoin project should begin operation until it adequately addresses relevant legal, regulatory and oversight requirements through appropriate design and by adhering to applicable standards.”

The document added that the G7 central banks are “closely monitoring” the impact of price pressures on inflation expectations, stating that they would “continue to appropriately calibrate the pace of monetary policy tightening in a data-dependent and clearly communicated manner, ensuring that inflation expectations remain well anchored, while being mindful to safeguard the recovery and limit negative cross-country spillovers.”