G7 Leaders Call for Rapid Regulation on Crypto Assets at Latest Meeting: Report

Financial leaders in the G7 (G7) major economies are known to be calling for comprehensive regulation of digital assets.

Reuters reported on a draft joint statement signed by the finance ministers and central bankers of Canada, France, Germany, Italy, Japan, the UK and the US G7 countries. ask The Financial Stability Board (FSB) accelerates global regulation of cryptocurrencies.

The FSB oversees and encourages the global financial system. International organizations have also played a key role in promoting regulatory reform after the 2008 economic crisis.

“In light of the recent turmoil in the cryptocurrency market, the G7 has reported to the Financial Stability Board (FSB)… We call for the rapid development and implementation of consistent and comprehensive regulations.”

These sentiments came after Terra’s UST and LUNA collapsed. Both plunged to essentially zero, wiping out tens of billions of dollars of wealth in just a few days.

Last month, European Central Bank (ECB) executive Fabio Panetta also called for global regulation of the cryptocurrency sector. He likened the cryptocurrency space to the subprime mortgage market that triggered the last major financial crisis in 2008.

“In fact, the cryptocurrency market is now bigger than it was when the $1.3 trillion subprime mortgage market triggered the global financial crisis. And they show surprisingly similar dynamics. In the absence of proper controls, crypto assets promise fast, high returns and induce speculation by exploiting regulatory loopholes that prevent investors from being protected. “Limited understanding of risk, fear of missing out, and strong lobbying from legislators increase exposure while slowing regulation.”

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Disclaimer: Opinions expressed in the Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies or digital assets. Your transfers and transactions are at your own risk and you are responsible for any losses you may incur. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, and The Daily Hodl is not an investment advisor. Daily Hodl is involved in affiliate marketing.

Main Image: Shutterstock/prodigital art/Natalia Siiatovskaia

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