by Viktor A 

June 15, 2021

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The European Commission’s Directorate-General for Competition has expressed its intention to draw up a list of rules regulating the activities of so-called “cryptocurrencies”. The Commission has called for a gradual and cautious approach to defining cryptocurrencies, stating that many of them are speculative ventures, with the result that their regulatory status is unknown.

The Italian regulator has issued a warning about unregulated cryptocurrencies in Italy, a topic that has been gaining prominence in the last few months. Despite the fact that the warning is a precautionary measure, it could set a precedent for other European countries, given the high level of cryptocurrency trading taking place in the country.

The Italian Banking Association has issued a warning to the public about the dangers of cryptocurrencies, especially Bitcoin and its derivatives. The warning comes after the association found that 15 companies associated with cryptocurrencies had been registered in Italy in 2017. Those companies had a total asset value of 23 million euros (€) and employed nearly 200 people..

Summary of the situation – The rise of unregulated cryptocurrencies may be a problem for the market. – Paolo Savona joins other leading institutions in calling for greater regulation of digital assets. The proliferation and growth of digital currencies without clear and explicit regulation can be worrying. The head of Italy’s regulator also said the whole affair could be detrimental to the functioning of the market. Paolo Savona made such statements on Monday, joining other institutional officials in calling for tighter regulation of cryptocurrencies. Paolo Savona, Italy’s securities regulator, agrees that digital currencies can facilitate illegal activities such as terrorism and money laundering. He warns that illegal activities could undermine central banks’ ability to conduct monetary and fiscal policy.

Regulation of cryptocurrencies to prevent market problems

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The Consob chairman argues that virtual currencies, if not properly supervised, can cause turbulence in the financial market. He also pointed out that market transparency, rational choice of transactions and legality could deteriorate. The US and Europe are in the process of regulating cryptocurrencies and their providers, as investors are still looking for rules of the game. Some countries, such as China, Russia and the UK, whose regulatory frameworks are constantly evolving, are considering central banks launching their own cryptocurrencies. Paolo Savona says there are between 4,000 and 5,000 digital coins in circulation, with no real regulation. In an interview, he said the prospect of this happening any time soon was worrying, given the Consob’s recent experience of shutting down hundreds of websites in Italy that were used to collect savings illegally. It warns that digital currencies can be used as a cover for criminal activities such as money laundering, kidnapping, terrorist financing and tax evasion. Savona also noted that if it takes too long to regulate at EU level and find an effective solution, Italy should take action on digital assets.

US reports increased risk and scrutiny of virtual currencies

Like Europe, the United States has reported increased regulation and fiscal oversight of cryptocurrencies. Jerome Powell, head of the US Federal Reserve, has stepped up the pressure to regulate digital currencies. He says they are a problem and a risk to financial stability. The Treasury Department also said it was concerned that the wealthy were using unregulated digital assets to evade taxes. He also said he wanted authorities to know about large transfers of crypto assets. The statements come amid a plunge in bitcoin, which lost up to 30 percent of its value last month after China announced new restrictions on the digital currency market. Volatility in the sector is also a risk for investors, officials said.On August 24, the Italian Banking Association (ABI) released a report, claiming that the use of cryptocurrencies has no solid regulatory foundations. According to the report, the legal status of cryptocurrencies in Italy is not clear.. Read more about crypto regulations 2020 and let us know what you think.

Read more about blockchain & cryptocurrency regulation 2020 and let us know what you think.