G7 countries to meet this week to discuss crypto assets, following the recent Terra ecosystem crash

The recent sudden collapse of the Terra ecosystem has attracted the attention of authorities worldwide! The G7 finance ministers are to meet this week to discuss cryptocurrency assets on a priority basis.

On Tuesday, May 17, Reuters quoted French central bank director Francois Villeroy de Galhau as saying this. Villeroy stated at an emerging market seminar in Paris:

“What happened in the recent past is a wake-up call for the urgent need for global regulation. Europe paved the way with MICA (regulatory framework for crypto-assets), we will probably … discuss these issues among many others at the G7 meeting in Germany this week”.

Within a week, the recent collapse of TerraUSD (UST) stablecoin wiped out billions of dollars in investor capital. Following that, regulators around the world have been on high alert.

Regulators  alert after Terra collapse

South Korea has already launched an investigation at the highest level! Yun Chang-Hyun, a lawmaker of South Korea’s ruling People Power Party, has also urged Terra creator Do Kwon to be heard in parliament.

Simultaneously, regulatory bodies such as the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) will audit local crypto exchanges. A spokesman for the financial authorities told the local publication Yonhap News: 
“In regards to the Luna incident, we are monitoring the overall situational changes, but there isn’t a direct measure the government can take at this moment. There is no ground for the government to intervene because coin transactions are being freely operated by the private sector.”

Demand for stablecoin audits is increasing

Following the events of the previous week in the crypto realm, the demand for stablecoin audits has increased. There has long been a conspiracy around the actual USD reserves held by the Tether (USDT) stablecoin.

Following the demise of TerraUSD (UST), market participants are requesting that all other stablecoin providers undergo an impartial audit. Ki Young Ju, CEO of CryptoQuant, recently asked whether USDT is completely backed or not. In response, Tether CTO Paolo Ardoino stated: 

“We have redeemed 7B in 48h, without the blink of an eye. How many institutions can do the same? We can keep going if the market wants, we have all the liquidity to handle big redemptions and pay all 1-to-1. Yes, Tether is fully backed”