Meeting Of G7 Finance Ministers And Central Bank Governors: Crypto-Asset Regulation – Fin Tech

The G7 Finance Ministers and Central Bank Governors recently met
in Petersberg, Germany, from May 18 and 20. They were joined by the
heads of the International Monetary Fund, World Bank Group,
Organisation for Economic Cooperation and Development, and the
Financial Stability Board (“FSB”). The Ukrainian Prime
Minister and Finance Minister were also in attendance.

After the meeting on May 20, a joint communiqué was released on
behalf of the G7 Finance Ministers and Central Bank Governors. A
wide range of topics was discussed during the meeting, including:
the continued economic support for Ukraine; macroeconomic
stability; global health and the COVID-19 pandemic; digitalisation;
climate and the environment; sustainability of the financial
market; and international financial architecture. 

The G7 reiterated their support for the FSB’s role to
oversee and address stability risks in the financial market arising
from all forms of crypto-assets. Furthermore, they have welcomed
the global cooperation to resolve current crypto-asset regulatory
issues, particularly in the area of cross-border payments.

Given the recent developments and uncertainty in the
crypto-asset market, the G7 are asking the FSB to coordinate with
international standard-setters to rapidly develop and implement a
consistent and comprehensive regulation of crypto-asset issuers and
service providers. This is carried out with the goal of holding
crypto-assets (including stablecoins) to the same standards as the
rest of the financial system. Critically, the G7 have called for
the implementation of the Financial Action Task Force “travel
rule,” with the implementation of stronger disclosure and
regulatory reporting requirements.

In their joint communiqué, when discussing reserve assets
backing stablecoins, the G7 “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.”

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