European Central Bank (ECB) executive board member Fabio Panetta has warned that all entities engaging in activities related to cryptocurrencies should expect to face stringent banking oversight.
In a speech on Monday, Panetta said that the ECB is fully committed to keeping financial markets stable through effective banking supervision. He added that the ECB expects all banks and bank-like entities that are engaged in activities related to cryptocurrencies to adhere to the same rules and regulations as other banks and financial institutions.
Panetta said that the ECB will actively monitor to ensure that banks are not taking advantage of the lack of oversight for capital markets, by engaging in risky activities related to cryptocurrencies. He added that the ECB will continue to keep a close eye on the activities of these firms and ensure that they remain within the law.
These strict regulations come amid increasing concern from many countries around the world regarding the potential implications of cryptocurrencies. regulators and governments are becoming increasingly concerned with the lack of consumer protection and the potential for money laundering that comes with the use of digital currencies.
Panetta’s comments emphasize the stance of many other governments and regulatory bodies who are taking a firm stance against cryptocurrencies and imposing tougher regulations on them.