G7 Urges to Speed Up Crypto Regulation Development Following TerraUSD Crash

The Financial Stability Board (FSB) should accelerate the development of regulation of digital assets, as it has been requested in the communiqué of the meeting of the finance ministers of the G7 countries, Reuters has reported.

The initiative has arisen after the collapse of the Terra ecosystem due to the loss of the peg of the algorithmic stablecoin UST to the US dollar. US Secretary of the Treasury Janet Yellen and other dignitaries of the G7 countries have earlier commented on the consequences of the incident.

François Villeroy de Galhau, Governor of the Bank of France, has said:

“Digital assets can destroy the international financial system if they regulated, monitored and interacted in a consistent and appropriate manner across jurisdictions.”

The UK Treasury has previously ruled out the legalization of algorithmic stablecoins and Galaxy Digital founder Mike Novogratz has called TerraUSD “a big idea that failed.”