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ECB's Panetta calls for urgent action to curb crypto Wild West

ECB's Panetta calls for urgent action to curb crypto Wild West

Global regulators need to hasten efforts to introduce a coordinated framework to tackle the crypto-asset Wild West, the European Central Bank's Fabio Panetta has warned.

ECB executive board member Panetta used a speech at Columbia University to warn that crypto assets are bringing about instability and insecurity, "creating a new Wild West".

"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," says Panetta.

Not only is crypto being used for tax evasion and criminal and terrorist activities, it is also threatening financial stability, requiring an urgent response from authorities.

Says Panetta: "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."

He concludes: "We should make faster progress if we want to ensure that crypto-assets do not trigger a lawless frenzy of risk-taking."

Comments: (3)

A Finextra member
A Finextra member 25 April, 2022, 20:53Be the first to give this comment the thumbs up 0 likes

Well, the Wild West resulted in..... California, Silicon Valley, vast areas of food production, some of the highest GDP per capita in the world for more than a century.

It was a major opportunity in the late 1800s for those prepared to brave it to access land with the promise of prosperity and independence and it paid off for them massively.

A huge success story.

Just saying....

A Finextra member
A Finextra member 27 April, 2022, 14:03Be the first to give this comment the thumbs up 0 likes

...and the nearly total annihilation of the plains and western Native Americans, a lawless and violent society from Lewis and Clarke to the (very) early 1900s, etc.  Let's hope we don't have to pay that price before we get to your result.

Just saying too.

A Finextra member
A Finextra member 29 April, 2022, 08:06Be the first to give this comment the thumbs up 0 likes

"a lawless and violent society", "annihilation" - this misinformation and misunderstanding of crypto assets are reaching absurd levels.

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