Followed by crypto department In preparation for the 2022 crash, European Central Bank (ECB) board members called for increased oversight of the sector.
He proposed that, following recent price volatility, digital assets have a “speculative nature” due to their fluctuating values and should be treated as a “gambling activity” due to their unbacked background. .
“They serve no useful function socially or economically. <…> It is rarely used for payments and does not fund consumption or investment. As a form of investment, unbacked crypto has no intrinsic value either. They are speculative assets,” he said.
borrowing from gambling laws
In addition, Panetta said in the enactment: ruleAt the same time, he said digital assets could be used for other evils such as money laundering, terrorist financing and sanctions evasion. We focused on identifying potential means of
“Vulnerable consumers should be protected through principles similar to those recommended by the European Commission for online gambling. <…> They should be taxed according to the cost they impose on society,” he added.
It is worth noting that the growing popularity of cryptoassets has fueled calls for regulation due to concerns that their impact could affect the broader financial system. In this case, there are calls to “burn out” the sector as the impact on the financial system would be minimal.
However, Panetta suggested that leaving the sector to “self-combustion” may not be an option due to the risks associated with the cryptocurrency industry.
Board members further called for the need to implement a central bank digital currency (CBDCs) counteract the influence and influence of private digital assets. Notably, the ECB is one of the world’s central banks and is in the advanced stages of investigating a possible CBDC of his.
It is also worth mentioning that Europe is one of the jurisdictions globally that is leading the discussion on crypto regulation.In this line the region is Working towards rollout Crypto-asset market (mica) legislation.