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Members of the ECB call for stricter crypto regulations

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ECB members have been pushing for more stringent crypto regulations for several months. Their proposal is based on concerns that the price of cryptocurrencies is too volatile and unregulated to fulfill the three functions of money. It also seeks greater global regulatory control. Panetta aims to bring cryptocurrency into line with the rest of the financial system, including taxing it and introducing strict transparency requirements.

The new regulation isn’t intended to limit innovation, but it does aim to protect the interests of citizens’ money and save. It also wants to ensure banks retain control over the economy and don’t lose control. The ECB’s new recommendations are a good first step towards this goal. However, if you’re looking for the best investment opportunities, CNBC Pro can help you. We have exclusive interviews with leading financial experts, stock picks, analyst calls, and more.

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Several ECB members have been pushing for more stringent crypto regulations, in response to concerns about cryptoassets’ use by retail consumers. This has come about because remote banks issued banknotes backed by questionable assets, which undermined public confidence. The same risks exist for cryptoassets, but with better regulation, cryptoassets could flourish. This report should provide further insight into how to regulate the industry.

EU regulators are also pushing for stricter crypto regulation. The Fifth Anti-Money Laundering Directive brought cryptocurrency-fiat currency exchanges under the purview of EU anti-money laundering legislation. Exchanges were required to perform KYC on their customers and meet standard reporting requirements. The sixth Anti-Money Laundering Directive, meanwhile, made compliance with crypto regulations even stricter. In addition to making cryptocurrency more transparent, it also added cybercrime to the list of money laundering offences.

Despite these concerns, the report notes that the European Central Bank is actively exploring new regulations. In January 2020, the European Commission announced a public consultation initiative. It sought guidance on incorporating crypto assets into the EU regulatory framework. The European Parliament voted on MiCA in February, but this vote was halted on Feb. 28. However, many critics of the proposed legislation say it could hinder the proof-of-work process that secures the Bitcoin network.

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A recent report by the Central Bank of Ireland warned of the risks associated with cryptoasset investments. The central bank believes that consumers cannot assess the risks of such investments and will suffer severe losses if they invest directly. It also warns that cryptoassets lack investor protection measures. Therefore, the central bank has called for more stringent crypto regulations. This report is not without its own challenges, but one that should be studied closely.

The ECB’s President, Christine Lagarde, urged European governments to approve the new rules on cryptoassets as quickly as possible. This is a wise move, as governments are often tempted to cling to bans that will only end up creating more problems for their citizens. In the meantime, cryptoassets are being used to circumvent these laws.

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