As the crypto industry grows, so does the need to regulate digital coins. Recently, Francois Villeroy, governor of the French central bank, called for EU regulators not to diverge crypto regulations as it would create an uneven playing field. Such rules also make it difficult for investors to risk arbitrage, he said.
Francois calls for EU regulators to avoid overly complex crypto regulations
At a conference held in Paris last Tuesday, François Villeroy mainly discussed crypto laws and regulations. They said they should avoid splitting crypto regulations or issuing regulations too late for the EU. He added that such regulation would result in an uneven playing field for investors, which would expose cherry-picking and arbitrage.
Image source: Sad Bocconi
Talking about crypto laws and regulations, he said that complex crypto laws can lead to money laundering and may not be enough for investor protection.
According to the reports, two years ago, in September 2020, the European Commission issued the Mica bill, part of their digital financing system, to put digital coins and assets in a single crypto regulatory framework in the EU. Also, the European Parliament reached a temporary agreement on this law on June 30. Still, the bill is not expected to be implemented in 2024, which is not a good sign for the crypto industry.
The ECB has some plans for crypto regulations
Last month, the ECB stated that they are considering harmonizing the regulatory framework responsible for regulating crypto services in the European Union. Also, François Villeroy asked the EU regulators not to separate crypto regulations and stated that there is currently no unified framework responsible for regulating the activities of crypto assets in the EU, which is a big problem for them.
He added that it is the ECB’s responsibility to ensure that banks do not know whether to offer crypto services to their customers and that banks do so in a safe manner.
What do you think of Francois Villeroy’s comments for EU regulators? Do you think EU regulators can create a good crypto regulatory framework? Let us know in the comments below. And if you find our content informative, share it with your family and friends.
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