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The head of the Italian securities market regulator, Commissione Nazionale per le Societ e la Borsa (CONSOB), has expressed concern about the lack of regulation of the cryptocurrency, saying that the continued use of cryptocurrency unregulated crypto assets pose certain risks.
Consob President calls for a solid regulatory framework for cryptography
According to Reuters, Monday, June 14, 2021, Paolo Savona, president of Consob, expressed his concerns during a presentation of the agency’s annual report. Savona espoused the well-worn rhetoric that cryptocurrencies were used by criminals for illegal activities such as money laundering and terrorism.
The Consob official also said that the widespread use of unregulated cryptocurrencies could make it difficult for central banks to implement effective monetary policies. A statement from the President of Consob reads as follows:
Without proper oversight, there could be a deterioration of market transparency, the basis of legality and rational choice of (market) operators.
Meanwhile, the belief that cryptocurrency is the preferred choice of bad actors to carry out illegal activities has been proven wrong with various research, as crypto-related crimes only make up a small percentage. On the contrary, surveys reveal that criminals prefer to use fiat money.
Savona’s call for crypto regulation echoes similar sentiments shared by different governments. Earlier in 2021, the Philippines made changes to their existing cryptocurrency regulatory policies, to prevent the use of crypto for money laundering. Last June, the Iranian president revealed that he was planning to launch a cryptocurrency regulatory framework.
In addition, the head of Consob believes that the issue of crypto relations must be urgently addressed in Europe. According to Savona, the European Union was moving at a slow pace and said that if the EU took too long to put in place a regulatory framework, Italy would be forced to establish its own crypto regulations.
Prohibition or regulation of cryptography?
While some governments and regulators are pushing for cryptocurrency regulations, others, like China, believe a blanket ban is a better option. Earlier in June, a Dutch government official called for a ban on cryptocurrencies, saying crypto assets have no intrinsic value. However, the country’s finance minister said it was better to monitor the crypto industry than to call for a ban.
Even El Salvador’s adoption of bitcoin as legal tender has attracted criticism from various global financial institutions such as the International Monetary Fund (IMF) and the Bank for International Settlements (BIS). Wall Street banking giant JPMorgan also hinted that El Salvador’s bitcoin movement had no economic benefit.
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