Cryptocurrencies were put on the agenda at the G7 meeting due to the LUNA collapse, which had an earthquake effect in the crypto market. G7 finance ministers created a draft text as preliminary work for regulations and called on the Financial Stability Board to speed up the work.
G7 took action for regulations after the LUNA crisis
Before the G7 meeting started , as we mentioned in the news of Cryptokoin.com , Governor of the French Central Bank Francois Villeroy de Galhau announced that the regulations concerning all cryptocurrencies, including Bitcoin and Ethereum, will be the focus of the G7 meeting to be held in Germany.
Francois Villeroy de Galhau emphasized that this issue was added to the agenda amid the unique turbulence caused by the collapse of Terra USD (UST) and Terra (LUNA), which created an earthquake effect in the crypto money market last week.
Now, according to a report by Reuters, the crisis in TerraUSD (UST) has mobilized the finance ministers of the G7, as stated by Francois Villeroy de Galhau. According to Reuters, the G7 finance ministers drew attention to the following in a draft text they created in the preliminary work for the regulations:
As the G7, as a result of the recent crisis in the crypto asset market, it is able to regulate the Financial Stability Board in a harmonious and comprehensive manner. We urge you to speed up the work carried out for
Stablecoins will be at the focus of regulations
The Financial Stability Board, headquartered in Basel, oversees the global financial system and works to support financial stability. As it will be remembered, Financial Stability Board officials announced that they would prepare a report on how to regulate, supervise and monitor the algorithmic or reserve-based stablecoins that set the agenda with the LUNA collapse, and that they would publish this report in October last year.
Kriptokoin.com , which you follow closely in the news, the imbalance that started with the loss of the Terra USD (UST) dollar anchor, the Anchor Protocol (ANC) problem came together and this led to the dissolution of the UST. and caused Terra (LUNA) to crash. This collapse led to billions of dollars in liquidations and literal market carnage in the cryptocurrency market. Following these developments, US Treasury Secretary Janet Yellen emphasized that this collapse reinforces the urgent need for a new regulatory framework on cryptocurrencies and stablecoins.
