Executive board member of the European Central Bank Fabio Panetta has claimed global regulators need to quicken efforts to launch a framework to tackle the crypto ‘wild west’.
Panetta used a recent speech at Columbia University to heed a warning that crypto assets are creating instability and insecurity, subsequently creating ‘a new wild west’.
He said, “In the absence of adequate controls, crypto-assets are driving speculation by promising fast and high returns and exploiting regulatory loopholes that leave investors without protection.
“We need globally coordinated regulatory action to address issues such as the use of crypto-assets in cross-border illicit activities or their environmental footprint. We should make faster progress if we want to ensure that crypto-assets do not trigger a lawless frenzy of risk-taking.”
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