French Central Banker Warns Complex Crypto Regulations Could Create ‘Uneven Playing Field’ – Regulation Bitcoin News

The governor of France’s central bank, François Villeroy de Galhau, has urged EU regulators to “avoid adopting diverging or contradictory regulations, or regulating too late.” He warned that “To do so would be to create an uneven playing field, risking arbitrage and cherry picking.”

French Central Bank Governor Warns About Adopting ‘Unduly Complex’ Crypto Regulations

Banque de France Governor François Villeroy de Galhau talked about cryptocurrency regulation at a conference on digital finance in Paris Tuesday. French central banker:

It is important to be careful not to adopt contradictory or diverging regulations or regulate too late. Achieving this would lead to an inequitable playing field that could result in arbitrage and cherry-picking.

Villeroy de Galhau added that “unduly complex” crypto regulations could fall short of investor protection and money laundering prevention.

In September 2020, the European Commission introduced Markets in Crypto Assets Regulations (MiCA), a bill to regulate crypto assets and issuers in one EU regulatory framework. Although the European Parliament and Council came to a preliminary agreement about MiCA on June 30, it is unlikely that MiCA will be fully implemented before 2024.

In August, the European Central Bank (ECB), presented its plans to harmonize EU regulations governing cryptocurrency activities and services. “There is currently no harmonized regulatory framework governing crypto-asset activities and services in the EU,” the regulator explained, adding that banks are increasingly considering whether to offer crypto products and services, and it is the ECB’s role to “ensure they do so safely and soundly.”

The European Securities and Markets Authority (ESMA), the EU’s top securities markets regulator, warned in May that soaring inflation may drive retail investors into cryptocurrencies. Luis de Guindos (ECB Vice President) said Monday that the eurozone’s inflation rate is increasing while growth is declining. “We are seeing that in the third and fourth quarters there is a significant slowdown and we may find ourselves with growth rates close to zero,” he detailed.

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What do you think about the comments by Banque de France Governor François Villeroy de Galhau? Comment below.

Kevin Helms

Kevin, a student of Austrian Economics and evangelist since 2011, discovered Bitcoin. He’s interested in Bitcoin security, open source systems, network effects, cryptography, and how economics intersect with cryptography.

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