Mario Centeno, governor of the Bank of Portugal, joins a group of regulators who claim that national efforts to supervise cryptocurrencies will not function properly without a global framework.
In his opening remarks at the 2023 Banco de Portugal Financial Stability Conference on October 2, Centeno Named For international cooperation in order to establish a “strong framework” and avoid the possibility of “regulatory arbitrage”:
“It would be short-sighted to believe that regulating and supervising these global risks and international players at the national level would be sufficient.”
Speaking about crypto assets and decentralized finance, Centeno noted the “undeniable risk” of their long-term unviability. The official expressed his lack of belief in the possibility of democratizing digital assets and even their eventual survival:
“These volatile products have seen a huge surge in popularity during the COVID-19 pandemic, but have proven unsustainable and, unsurprisingly, culminated in the collapse of many products.”
Centeno praised the EU’s first comprehensive cryptocurrency framework, the Markets for Cryptoassets (MiCA) Regulations, but insisted on greater international consolidation of regulatory efforts under the principle of “same risk, same regulation.”
Related: The rise of cryptocurrencies in Brazil prompts the central bank to tighten regulation
Much the same sentiment was recently expressed by the Executive Director for Strategy, Policy and Supervision at the German Federal Financial Supervision Authority. In a blog post, Robert Schaefer acknowledged the clear progress in cryptocurrency regulation through the adoption of MiCA in the EU, but pointed out the inconsistencies that exist on a global scale.
In August, Indian Prime Minister Narendra Modi also called for global cooperation in formulating cryptocurrency regulations during the annual G20 summit.
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