Unregulated spread of cryptocurrencies a concern, says Italian regulator

© Reuters. A representation of the virtual cryptocurrency Bitcoin is seen in this picture illustration taken June 14, 2021. REUTERS/Edgar Su/Illustration

MILAN (Reuters) – The spread of cryptocurrencies without any clear regulation is a cause for concern and could damage the way the market operates, the head of Italy’s stock market regulator said on Monday.

Paolo Savona joined a host of institutional leaders who have clamoured for more regulation and said cryptocurrencies could facilitate illegal activity such as money laundering and even undermine central banks’ ability to conduct monetary policy.

“Without proper oversight there could be a worsening in market transparency, the basis of legality and rational choice for (market) operators,” the Consob chairman said as he presented the watchdog’s yearly report.

Europe and the United States are both working on regulating digital assets and their providers, as investors look for new ground rules.

Alongside the evolving regulatory framework, some countries, including China, Britain and Russia, are considering launching their own central bank digital currencies.

Savona said there were some 4,000-5,000 cryptocurrencies in circulation without any form of real regulation.

“If we add to this Consob’s recent own experience in closing down in Italy hundreds of websites illegally gathering savings, the picture that emerges is worrying,” Savona said.

He warned that the currencies could be a shield for criminal activity such as tax evasion, money laundering, funding terrorism and kidnapping.

“If it takes too long at a European level to come up with a solution, (Italy) will have to take its own measures,” he said.

See also  Colonial Pipeline As A Case Study On Cryptocurrency Risks - Forbes
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Please enter your comment!
Please enter your name here