As the crypto industry grows, the need for regulating digital coins is also increasing. Recently, France’s Central Bank Governor, Francois Villeroy, requested EU regulators to avoid diverging crypto regulations as it would create an uneven playing field. He also stated that such regulations would make things complicated for investors who would risk their arbitrage.
Francois asks EU regulators to avoid unduly complex crypto regulations
Last Tuesday, during a conference in Paris, Francois Villeroy mainly discussed the crypto rules and regulations. He stated they should avoid diverging crypto regulations or making regulations too late for the EU. He added that such a regulation would become a reason for an uneven playing field for the investors, which would risk cherry-picking and arbitrage.
While talking about the crypto rules and regulations, he also said that complex crypto rules could become a reason for money laundering and may not be enough for investors’ protection.
As per the reports, two years back, in September 2020, the European Commission released the MiCa bill, which was a part of their digital financing system to place digital coins and assets across the EU under a single crypto regulation framework. Also, the European Parliament reached a provisional agreement on this bill on June 30th. Still, it is not expected that the bill will come into force by 2024, which is not a good sign for the crypto industry.
ECB has some plans for crypto regulations
Last month, the ECB stated that they are thinking of harmonizing the regulatory framework responsible for controlling crypto services in the EU. Also, Francois Villeroy requested EU regulators avoid diverging crypto regulations and stated that currently, there is no harmonized framework responsible for controlling the crypto assets activities in the EU, which is a big problem for them.
He added that banks are unable to determine whether they should provide their customers with crypto services, and it’s the responsibility of the ECB to ensure that banks are able to do so safely.
What are your thoughts on Francois Villeroy’s recommendation for EU regulators? Do you think the EU regulators will be able to create a good crypto regulating framework? Let us know in the comments below. And if you found our content informative, do share it with your family and friends.
Also Read: Cybercriminal group arrested for suspected laundering of $5.6 billion.