Recently the crypto market has experienced a ‘terrible’ collapse. The Terra (LUNA) and TerraUSD (UST) incidents were enough to make investors ’knees shake.
As a result, central bank governors and Group 7 (G7) finance ministers have called for the establishment of a global cryptocurrency supervision framework.
Because of that he hopes crypto assets can be controlled, monitored, and interoperable consistently, appropriate for all jurisdictions.
This will be discussed at the G7 meeting in Germany this week.
Meanwhile, the G7's action was seen as different from its decision on October 14, 2021. At that time, the G7 allowed the establishment of a central bank digital currency (CBDC) albeit conditionally.
The move reflects the G7’s concerns over the volatile crypto market as it relies on widespread market speculation.
Moreover, what the G7 is worried about is in line with the volume of US Treasury Secretary Janet Yellen who wants the stablecoin policy to be introduced as early as the end of 2022.
Most recently, the chairman of the United States (US) Securities and Exchange Commission (SEC), Gary Gensler also warned of more falls in the crypto market in the future.
