G7 countries call for rapid crypto regulation in light of the recent Terra Luna saga

Following the fall of the Terra stablecoin last week, the world's top financial executives urged for rapid and complete regulation of cryptocurrencies.

G7 to regulate crypto
G7 Countries | Image: iStockPhotos

According to a report published by Reuters on May 19, the key topic was fast regulation of crypto assets in light of the recent Terra (LUNA) debacles that rattled the crypto sector.

The meeting was in Koenigswinter, Germany, on Thursday 19 and Friday 20 May.

The finance ministers and central bankers concluded in a document produced during the meeting:

“In light of the recent turmoil in the crypto-asset market, the G7 urges the FSB (Financial Stability Board)…to advance the swift development and implementation of consistent and comprehensive regulation.”

After a filing from Coinbase crypto exchange raised concerns earlier this week, the Biden administration expressed interest in regulating the cryptocurrency business.

In essence, the filling demonstrated that, in the event of bankruptcy, Coinbase could access the crypto wallets of its customers.

Officials in the United States are considering measures to prohibit such actions and safeguard customers or investors.

Additionally, on May 20, a new law was established allowing customers to put Bitcoin in their 401(k) plans if they so wished.