G7 nations urge swift regulation for crypto

In light of the stablecoin crisis that hit Terra and Luna last week, finance ministers and central bank governors of G7 nations called for increased crypto regulations.

Finance ministers and central bank governors from the Group of Seven (G7) industrialised nations have announced they believe that the cryptoverse requires more stringent and standardised regulations in light of Terra and Luna crash earlier this month.

"In light of the recent turmoil in the crypto-asset market, the G7 urges the FSB (Financial Stability Board)...to advance the swift development and implementation of consistent and comprehensive regulation," said the joint document, according to Reuters.

Earlier this week, the Biden administration had also shown interest in increasing regulations on the industry after Coinbase's filings provoked alarm among their customers. The fillings showed that Coinbase could theoretically tap into the holdings of their custodial wallets in case of bankruptcy fillings, prompting the current American government officials to work towards new legislation to criminalise such practices.

However, there was surprising news from Russia when Russian Industry and Trade Minister Denis Manturov said that he believes that the government will start accepting cryptocurrencies "sooner or later." This statement comes despite the Russian central bank's aversion to the cryptoverse, with public statements from its governor asking for total token and crypto mining bans.

The G7 ministers are currently in Koenigswinter, Germany for a two-day summit that is being held from May 19-20.

Edited by Kanishk Singh


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