Crypto regulation on agenda at G-7 finance chiefs meeting
Regulation of crypto assets will be a topic of discussion within the Group of Seven, according to French central bank chief Francois Villeroy de Galhau, Reuters reported on Tuesday (May 17).
The finance chiefs are due to meet this week in Germany. Speaking at an emerging markets conference, Villeroy said the recent crypto market turmoil proves there is a need for regulation.
“What happened recently is a wake-up call about the urgent need for global regulation,” Villeroy said.
Furthermore, he said that the European regulatory framework for crypto-asset markets (MiCA) had been something they could rely on. He added that they would discuss this and other issues at the G-7 meeting.
Calls for crypto regulation are not new. For example, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler said crypto assets are “highly speculative” and investors need more protections before they lose faith in the markets. .
See also: US SEC Chairman Calls for More Crypto Disclosure
Gensler said those who don’t buy crypto don’t get the disclosures that come with buying assets of other types, including things like whether trading platforms are trading against them, or whether they own the assets stored in digital wallets.
According to him, there is a “grassroots market” in which the public can make choices about risk, even though there is supposed to be disclosure and honesty in all of this. He said the SEC would be something of a “cop on the beat” in terms of enforcing rules on crypto, such as anti-fraud, anti-manipulation measures and ensuring that a true order book exist.
Gensler added that crypto markets are not truly decentralized, as much of the activity comes from a few trading platforms. He said these platforms must work with the SEC.
The regulatory talks follow the collapse of the stablecoin UST, which lost its peg against the dollar. Crypto as a whole, including many major coins and exchanges, was facing dire results because of this.