“Same risk, same regulation”: G7 calls for rapid regulation of crypto assets
In addition to their expression of support for the work of the International Sustainability Standards Board – discussed here – the G7 Finance Ministers and Central Bank Governors have also strongly urged greater regulation of crypto assets, including enhanced disclosures.
In their communiqué, they highlight the support of the G7 for the work of the Financial Stability Board (FSB) to monitor and address financial stability risks arising from crypto assets, and welcomes increasing global cooperation to address regulatory issues associated with their use, such as in cross-border payments. “In light of the recent turmoil in the crypto-asset market, the G7 urges the FSB, in close coordination with international standard-setters, to advance the swift development and implementation of consistent and comprehensive regulation of crypto-asset issuers and service providers, with a view to holding crypto-assets, including stablecoins, to the same standards as the rest of the financial system,” it states.
The G7 particularly urges stronger disclosure and regulatory reporting, for example with regard to the reserve assets backing stablecoins, and affirms that stablecoins should not begin operation without addressing relevant legal, regulatory and oversight requirements. “The G7 remains committed to high regulatory standards for global stablecoins, following the principle of same activity, same risk, same regulation.”