- Regulators of Italy have also shown concerns regarding financial crimes related to crypto assets
- Consob chairman believes that digital assets could as a shield for criminal activities like money laundering, tax evasion, and financing terrorism
- Regulators are concerned as virtual currencies can undermine the position of central banks and fiat currencies
- Regulations have become a threat to the crypto ecosystem
Regulators are monitoring cryptos, as it gained mainstream attention globally. Several around the world are trying to learn cryptocurrency and blockchain technology’s potential. Moreover, several have also adopted digital means of living.
Following the potential, several nations are planning to make BTC legal tender. However, several nations like China, Nigeria, India, Turkey, and few others are planning strict regulations on the industry. In recent developments, Italy is the latest country that showed concerns regarding financial crimes related to crypto-assets.
Italian regulators are against cryptos
The stock market regulator of Italy has claimed on Monday that the unregulated spread of virtual assets is a cause for concern. Paolo Savona, the chairman of Consob, said to Reuters that without a proper outlook, things get worse in terms of market transparency, the basis of legality, and logical choice for market operators.
Moreover, the chairman of the Italian Consob cautioned the crypto users. Paolo claimed that such assets could be a shield for criminal activity. Indeed, cryptocurrencies could potentially help in activities like tax evasion, money laundering, and the most essential financing terrorism.
Cryptocurrencies can undermine fiat currency’s position
Late last month, the United States announced that it took steps towards issuing its own digital dollar. Following the scenario, many showed concerns that cryptocurrencies could undermine the dollar’s position as the world’s reserve currency. According to Paolo, digital assets could undermine the central bank’s ability to conduct monetary policy.
Cryptocurrencies cause financial frauds
The regulators also noted that there are more than 4k to 5k unregulated crypto assets in circulation. The essential issue arose after the regulators found that there are hundreds of illegal websites available in the scenario. Such websites were illegally gathering the detailed savings of the users in Italy. However, the regulators closed all those sites.
Italian regulators also considered that if the European nations don’t develop a solution, the country will take steps. Indeed, Italy is ready to take measures regarding cryptocurrencies.
Regulations are a threat to the crypto market
Crypto assets have gained popularity mainly due to their decentralized nature. Where the cryptos are concerned due to the privacy and freedom of users, several illicit actors are misusing the technology. On the other side, governments are involved as such currencies can potentially take the position of fiat currencies and the central bank’s power to conduct monetary policy.
Hence, the aforementioned factors are forcing governments to strict regulations over the crypto industry. Ultimately, the scenario is making it tough for cryptocurrencies to breathe in the world.
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