Governor of the Bank of Portugal, Mario Centeno, recently added his voice to the growing call for global crypto regulation. According to him, a national approach will likely yield no result unless there’s a global framework the regulation of the budding industry.
The Governor’s Call for Crypto Regulation
He made the call on Oct 2 in his opening speech at the 2023 Banco de Portugal Financial Stability conference, where he stated the need for international cooperation to set up a robust framework and completely avoid regulatory arbitrage.
This comes after several other calls by national authorities and financial experts to regulate digital assets. Indian Prime Minister Narendra Modi, in August, had also called for the same thing. He wanted a global approach to formulating crypto regulations during the annual G20 summit. Also, the executive director of strategy, policy, and control at the German Federal Financial Supervisory Authority (BaFin), Rupert Schaefer, stated the need for a crypto regulation.
Also Read: Crypto Regulation Doesn’t Have to be “Perfect”-Solana Co-Founder
He noted the progress made towards regulating crypto by Markets in Crypto Assets (MiCA) adoption in the European Union. However, he posited that a lack of alignment in goals for regulation on a global scale portends a major setback.
The Portuguese Central Bank Boss emphasized the “undeniable risk” of the sustainability of digital currencies in the long run.
In his words, “ These volatile products experienced an enormous surge in popularity during the Covid-19 pandemic, but proved to be unsustainable and, unsurprisingly, culminated in the collapse of several products.”
Centeno urged the EU to further consolidate its international approach to crypto regulation under the principle of “same risk, same regulation.”
In the meantime, let’s help you find the best crypto exchange for your needs!
Disclaimer: Please note that this article serves solely for informational purposes. As such, it is not financial advice. We strongly advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.
