European Central Bank (ECB) governing council member Villeroy de Galhau has called for faster adoption of crypto regulations. The statement came amid the growing crypto market which looks set to get back to its Pre-May market crash levels very soon. Villeroy who has been a big advocate for banks and CBDC in general believes the crypto market is moving at a fast pace and being a trillion-dollar economy, it needs to be brought under the regulatory framework.
*ECB'S VILLEROY: NEED QUICK ADOPTION OF CRYPTO ASSET REGULATION
— *Walter Bloomberg (@DeItaone) October 7, 2021
Villeroy has also advocated for Central Banks to hold control of the crypto market and has warned against the probable dominance of Digital Yuan, the CBDC developed by the Chinese government. Villeroy also serves as the President of the Bank of France and his call for faster adoption of crypto regulations could indicate stricter measures to take control of the crypto market rather than a crypto-centric regulation that would help it flourish further.
Crypto Crackdown on The Rise
Several nations have called upon their respective regulators to look into the fastly crypto market and impose strict regulations to ensure investor protection. The US is currently making headlines for its various takes on the crypto market, where the Securities and Exchange Commission chief Gary Gensler has assured that they have no plans of banning it but at the same time they want to impose strict regulations that could hamper the progress.
Earlier today the US Justice Department announced a national cryptocurrency enforcement team (NCET) to crack down on the use of cryptocurrencies for illegal activities. Apart from that, the Security lawsuit against XRP and Ripple has also caused a lot of controversies where former and current regulators have asked for better clarity from the regulatory body.
In South Korea, the government has imposed a new set of regulations that have forced smaller crypto exchanges to shut their door. Starting next year, the country plans to impose a 25% taxation on crypto transactions as well.