UST and LUNA Crash: G7 Countries to Discuss Crypto Regulations
The group of seven G7 members could touch upon the topic of cryptocurrency regulation during their meeting this week in Germany.
Francois Villeroy de Galhau Governor of the Bank of France said that Terra's fiasco and the recent crash of the crypto market serve as a "wake up call for implementing rules in the sector" As discussing such measures could be one of the main topics during this week's meeting of Group of Seven (G7) members.
Terra's ecosystem has caught the eye of the G7 members According to Reuters the world's leading economies (Canada, France, Germany, Italy, Japan, UK, USA, and EU) maybe consider imposing a regulatory framework on the crypto industry during their meeting (18-20 May) in Germany.
The head of the French central bank Francois Villeroy de Galhau said these events are a wake-up call for industry and that selling rules are a must now.
“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 EU's Market on Crypto Assets (MICA) is a proposed regulation that focuses on digital assets and their employment in the financial system. the Union stated that MICA's draft bill does not include the prohibition of proof-of-work-based cryptocurrencies like bitcoin.
This is not the first Francois Villeroy de Galhau has urged for the implementation of rules in the sector, he warned that Europe's monetary sovereignty is at risk if the EU authorities do not regulate cryptocurrencies. the Union's national currency could also be endangered if measures are not taken soon:
“Whether it is digital currencies or payments, we in Europe must be ready to act as quickly as necessary or take the risk of an erosion of our monetary sovereignty. I must stress here the urgency: we do not have much time left, one or two years.”