The recent crypto market instability has apparently served as a "wake-up call" for regulatory agencies, according to Bank of France Governor François Villeroy de Galhau.
The Group of Seven, or G7, central bank governors and finance ministers are allegedly planning to discuss cryptocurrency regulations.
Representatives from the United States, Canada, Japan, Germany, France, Italy, and the United Kingdom are expected to talk about concerns related to a regulatory template for cryptocurrencies at a meeting in Germany's cities of Bonn and Königswinter starting on Wednesday, according to a report from Reuters. Villeroy allegedly stated that recent crypto market instability had served as a "forewarning" for global authorities, pointing to several stablecoins de-pegging from the US dollar and the prices of key tokens falling.
"Europe prepared the path with MiCA," Villeroy said at a Paris developing markets conference, referring to European Parliament legislation aimed at establishing a regulatory framework for cryptocurrency. "We will certainly address these and other concerns at the G7 conference in Germany this week."
"Crypto-assets could destabilize the international financial system if they are not authorized, monitored, and interconnected in a uniform and suitable manner across countries," the Bank of France governor said in a speech to the Emerging Market Forum in Paris on Tuesday.
Finance ministers and central bank governors will encounter in Germany from May 18–20 to discuss policies related to member countries' recovery and financial stability following the COVID-19 pandemic, as well as "crafting the forthcoming transition processes in the context of digitalization and climate neutrality" and business policy at the International Monetary Fund, according to the G7 website. The organization released guidelines for the likely implementation of central bank digital currencies in 2021, as well as a warning that some stablecoins may pose a threat to the global financial system in 2019.
Given crypto's expanding importance in local markets, Villeroy has asked EU officials to build a legislative framework, claiming they only had "one or two years" to act. Prior to his election victory in France, Emmanuel Macron stated that he backed the European Parliament's recent moves to regulate cryptocurrency, including MiCA, but that any regulations should not stifle innovation.
