Banco de Portugal's Governor Centeno Advocates for Global Crypto Regulation Framework
Summary:
Banco de Portugal's Governor, Mário Centeno, has added his voice to calls for a global framework to regulate cryptocurrencies. Speaking at the Banco de Portugal Financial Stability Conference, Centeno stressed the need for international cooperation and highlighted the risks posed by digital assets and decentralized finance (DeFi). He also praised the EU's Markets in Crypto Assets (MiCA) regulation but insisted further international consolidation is necessary. Similar sentiments have been expressed by BaFin executive director Rupert Schaefer, and Indian Prime Minister Narendra Modi.
Banco de Portugal's Governor, Mário Centeno, has joined a plethora of authorities in declaring that without a worldwide structure, domestic regulatory measures on cryptocurrency may not be efficient. His keynote address at the Banco de Portugal Financial Stability Conference 2023, delivered on October 2nd, emphasized the need for a joint international effort to establish a "solid framework." He warned of the potential for "regulatory gaming" in the absence of such collaborative action and suggested national-level regulation would be insufficient for dealing with these globalized threats.
When discussing cryptocurrency assets and decentralized finance (DeFi), Centeno pointed to the pervasive and incontestable risk posed by their longer-term stability. He confessed his skepticism regarding the democratizing power of digital assets and questioned their ultimate survival, especially given the instability displayed by these products throughout the Covid-19 pandemic.
The Governor commended the European Union’s inaugural extensive digital currency regulation, known as Markets in Crypto Assets (MiCA), but stressed the need for more international engagement and harmonization of regulatory procedures, reinforcing the idea of "same risk, same regulation."
Similar sentiment was expressed recently by Rupert Schaefer, the strategy, policy and control executive director at Germany's Federal Financial Supervisory Authority (BaFin). In a blog post, Schaefer welcomed the significant strides made in cryptocurrency regulation through MiCA in the EU, but voiced concern about inconsistencies on a worldwide basis. Additionally, in August, Indian Prime Minister Narendra Modi urged international cooperation in establishing cryptocurrency regulations during the yearly Group of 20 (G20) summit.
Published At
10/3/2023 8:53:52 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.