G7 Countries to Discuss Crypto Regulations (Report)

François Villeroy de Galhau – Governor of the Bank of France – reportedly said that Terra’s fiasco and the recent crash of the crypto market should serve as a “wake-up call” for implementing rules in the sector. As such, discussing such measures could be one of the main topics during this week’s meeting of Group of Seven (G7) members.

• The recent events in Terra’s ecosystem have caught the eye of the G7 members. According to Reuters, the world’s leading economies (Canada, France, Germany, Italy, Japan, the UK, the USA, and the EU) might consider imposing a regulatory framework on the crypto industry during their meeting (18-20 May) in Germany.
• The head of the French central bank – François Villeroy de Galhau – said these events are a wake-up call for the industry and that setting rules is a must now:

“What happened in the recent past is a wake-up call for the urgent need for global regulation. Europe paved the way with MiCA (regulatory framework for crypto assets), we will probably… discuss these issues among many others at the G7 meeting in Germany this week.”

• The EU’s Markets on Crypto Assets (MiCA) is a proposed regulation that focuses on digital assets and their employment in the financial system. Earlier this year, the Union stated that MiCA’s draft bill does not include the prohibition of proof-of-work-based cryptocurrencies such as bitcoin.
• This is not the first time François Villeroy de Galhau has urged for the implementation of rules in the sector. Last year, he warned that Europe’s monetary sovereignty is at risk if the EU authorities do not regulate cryptocurrencies. In his view, the Union’s national currency could also be endangered if measures are not taken soon:

“Whether it is digital currencies or payments, we in Europe must be ready to act as quickly as necessary or take the risk of an erosion of our monetary sovereignty. I must stress here the urgency: we do not have much time left, one or two years.”