The regulation of crypto-assets is likely to be discussed at G7 Countries finance chiefs meeting this week in Germany, according to French central bank head Francois Villeroy de Galhau.
According To French central bank head Francois Villeroy de Galhau
“What happened in the recent past is a wake-up call for the urgent need for global regulation, Europe paved the way with MICA (regulatory framework for crypto-assets), we will probably … discuss these issues among many others at the G7 meeting in Germany this week”
The recent collapse of the Terra ecosystem has sparked the interest of regulators all over the world! The G7 finance ministers will meet this week to discuss cryptocurrency assets on a priority basis.
According to a Reuters report on Tuesday, Bank of France Governor François Villeroy de Galhau stated that representatives from the United States, Canada, Japan, Germany, France, Italy, and the United Kingdom will likely speak on issues related to a regulatory framework for cryptocurrencies at a meeting beginning on Wednesday in the German cities of Bonn and Königswinter. Villeroy reportedly stated that recent crypto market volatility — most likely referring to some stablecoins decoupling from the US dollar and major token prices falling — was a “wake-up call” for global regulators.
The Bank of France governor added in a speech to the Emerging Market Forum in Paris on Tuesday:
“Crypto assets could disrupt the international financial system if they are not regulated, overseen and interoperable in a consistent and appropriate manner across jurisdictions.”
Villeroy has previously urged EU officials to create a regulatory framework in light of cryptocurrency’s growing role in regional markets, claiming that they only had “one or two years” to act. Prior to his election victory in France, Emmanuel Macron stated that he supported the European Parliament’s recent efforts to regulate cryptocurrency, including MiCA, and that any regulations should not stifle innovation.
Regulators On Alert After Terra Ecosystem Collapse
Within a week, the recent collapse of TerraUSD (UST) stablecoin wiped out billions of dollars in investor wealth. Following that, regulators around the world have been on high alert. Recently Indian Financial Regulator SEBI proposes banning celebrity promotion of cryptos.
South Korea has already launched an investigation at the highest level! Yun Chang-Hyun, a representative of South Korea’s ruling People Power Party, has also demanded that Terra founder Do Kwon be heard in parliament. At the same time, regulatory bodies such as the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) will be inspecting local crypto exchanges.
Following the demise of TerraUSD (UST), market participants are demanding that all existing stablecoin providers conduct a fair audit. Ki Young Ju, CEO of CryptoQuant, recently asked whether USDT is fully backed or not.
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