Italy’s Stock Market Regulator Calls for Regulation on Crypto to Prevent Criminal Activity
- Concerns are growing in Europe as unregulated cryptocurrencies continue to grow in market size across the continent.
- Italy’s stock regulator head, Paolo Savona, is the latest authority to call on the regulation of cryptocurrencies to prevent market inefficiencies and money laundering using virtual assets.
In a Reuters report this Monday, Savona, head of Commissione Nazionale per le Società e la Borsa (Consob), the leading stock market regulator in Italy, joined a host of global authorities in demanding regulation of cryptocurrencies. Stating the growth of cryptos, Savona said the unregulated assets could be used in money laundering, distort the monetary policies set in place, and undermine the power of central banks across Europe and the globe. Savona said,
“Without proper oversight, there could be a worsening in market transparency, the basis of legality and rational choice for (market) operators.”
Despite recent reports that only a few accounts are responsible for the total crypto money laundering market, leaders across the globe have continually trashed these assets – Savona joining the choir of “crypto regulation.”
With the crypto market growing into a trillion-dollar unregulated market and thousands of cryptos popping up, Savona called for more government control in this field. He further states that leaving so many cryptocurrencies unregulated only provides a ‘shield for criminal activity using cryptocurrencies.’
The European Union (EU) and several other states such as China, Singapore, South Korea, and Japan have shown interest in creating central bank digital coins, or CBDCs, in the past to curb the growing cryptocurrency menace.
While the EU takes its time in developing laws and regulations to govern the digital currency space, Italy will not wait around to regulate cryptos, Savona confirmed. He said,
“If it takes too long at a European level to come up with a solution, (Italy) will have to take its own measures.”