G7 Agrees on Need of Crypto Regulations

A meeting between central bank officials and ministers from the G7 concluded that crypto assets require more regulation, the U.S. Treasury Department said in a press release on 7 December.

According to the announcement, participants of the meeting mainly discussed international economic responses to the COVID-19 pandemic, but also touched on cryptocurrency. The talk focused on the group’s responses to the “evolving landscape of crypto assets”, and on the national authorities’s work to prevent their use in illicit activities. The U.S. Treasury Department said in a statement:

“There is strong support across the G7 on the need to regulate digital currencies. Ministers and Governors reiterated support for the G7 joint statement on digital payments issued in October.”

The meeting was led by U.S. Treasury Secretary Steve Mnuchin, and was attended by members of G7, the International Monetary Fund, the Financial Stability Board, as well as leaders from the World Bank. Shortly after the meeting, Germany’s Finance Minister Olaf Scholz expressed his concerns over the Diem stablecoin project, previously known as Libra:

“A wolf in sheep’s clothing is still a wolf. It is clear to me that Germany and Europe cannot and will not accept its entry into the market while the regulatory risks are not adequately addressed.”

While G7 members have only expressed their concerns about the crypto sector, some U.S. lawmakers are attempting to make stablecoins illegal without prior approval. Last week, Representatives Rashida Tlaib, Jesús García, and Stephen Lynch proposed a bill that would require all stablecoin issuers to secure a bank charter and regulatory approval before issuing digital currencies. The so-called STABLE Act, however, has low chances of passing, considering there are only several weeks left before the current Congressional session ends.