Crypto regulations to be discussed at G7
While the crypto community is still reeling from the crash of Terra LUNE, and the G7 discussions aim to push for global crypto regulation
By Shashank Bhardwaj
Image: Ulrich Baumgarten via Getty Images
Bank of France Governor François Villeroy de Galhau announced on Tuesday, May 17, that crypto asset regulation will likely be discussed during the Group of Seven (G7) finance chiefs meeting, which begins this week in Germany.
Representatives from the United States, Canada, Japan, Germany, France, Italy, and the United Kingdom are expected to talk at the meeting about themes related to a regulatory framework for cryptocurrencies, as reported by Reuters. The governor called the recent crypto market volatility caused by Terra (LUNA) and TerraUSD (UST) a wake-up call, claiming that the volatility in crypto markets has pushed the urgent need for global regulation.
"What happened in the recent past is a wake-up call for the urgent need for global regulation," he said.
"Europe paved the way with MiCA," Villeroy said at a conference in Paris, referring to European Parliament legislation aimed at establishing a regulatory framework for cryptocurrency. “We will probably [...] discuss these issues among many others at the G7 meeting in Germany this week.”
He also added that "crypto assets could disrupt the international financial system if they are not regulated, overseen and interoperable in a consistent and appropriate manner across jurisdictions."
Given crypto's rising importance in regional markets, Villeroy had earlier asked EU officials to build a regulatory framework for it. President Emmanuel Macron also previously stated that he backed the European Parliament's recent moves to regulate cryptocurrency.
In the wake of recent events that shocked the crypto community, financial regulators around the world have begun investigating the crypto price trend. Financial regulators in South Korea, for example, have launched an investigation into cryptocurrency trends. They also passed the Basic Act on Digital Assets, which provides consumer protection in the face of such extreme price volatility.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash