Paolo Savona, president of the Commission Nazionale per le Societ a la Borsa (CONSOB) – Italy’s securities regulator – has raised alarm over the growing popularity of crypto in the absence of firm regulatory standards.
According to Reuters, Savona conveyed the situation on Monday while giving Consob’s annual report. by stating The lack of clear regulations creates an opportunity for criminals to use crypto for illegal activities. According to Savona:
“Without proper oversight, there may be a decline in market transparency, the basis for legitimacy and rational choice for (market) operators.”
With multiple research studies indicating that crypto criminality only accounts for a minute proportion of global cryptocurrency commerce, Savona has joined a group of financial regulators pushing the agenda of virtual currency crimes.
El Salvador’s recent parliamentary vote to adopt bitcoin (B T c) as legal tender is drawn criticism From several legacy finance gatekeepers. In the Netherlands, a Dutch official has called for Complete ban on cryptocurrencies.
Allianz Chief Economic Adviser Mohamed El-Erian, speaking during the CNBC Squawk Box event earlier on Monday signal As for the emerging narrative, it is called “the tug-of-war between adoption and regulation”.
For Savona, criminals using crypto for money laundering and tax evasion are not the only problems. According to the chairman of Consob, the proliferation of cryptocurrencies poses a potential threat to the ability of central banks to facilitate the sovereign monetary policies of their respective countries.
Given the extent of Savona’s crypto fears, the securities regulator blocked the slow pace of activities related to cryptocurrency regulations at the EU level. The Consob chief said Italy could be forced to set up its own regulatory framework if the EU takes too long to develop a region-wide set of laws.
However, not all developments on the crypto regulatory front are negative for the industry. Indeed, reports coming out of India suggest that officials have turned away from plans for a total ban, toward more granular rules. In the Netherlands also, Dutch Finance Minister Vopke Hoekstra has spoken in favor of Supervision instead of prohibition of cryptocurrency.