Finance leaders from the world’s largest economies are tackling the future of global crypto assets regulation.
The US Treasury says finance ministers and central bank governors from G7 countries – United States, Canada, France, Germany, Italy, Japan, and the United Kingdom – expressed their strong support for the need to regulate cryptocurrencies and other digital assets during the 12th G7 meeting chaired by US Treasury Secretary Steven Mnuchin this year related to the Covid-19 response.
“They also discussed ongoing responses to the evolving landscape of crypto assets and other digital assets and national authorities’ work to prevent their use for malign purposes and illicit activities.
There is strong support across the G7 on the need to regulate digital currencies.”
Stablecoins could be first on the agenda. At a meeting back in October, the group released a draft report stating that tokens pegged to traditional assets must be closely scrutinized and regulated.
“The G7 believe that no stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks are adequately addressed… Addressing such risks is not necessarily a guarantee of regulatory approval for a stablecoin arrangement.”
The same report also praised the potential for cryptocurrencies to offer improved financial services for the 1.7 billion people around the world who lack access to fair and equitable access to the banking system.
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