A top ECB official urged globally coordinated measures to regulate crypto and avoid a"lawless frenzy".
Fabio Panetta said the unregulated crypto market posed financial stability risks and policymakers should not leave it unchecked. Panetta suggested holding crypto to the same standards as other financial assets, and proposed bringing peer-to-peer crypto transfers under the scope of rules on anti-money laundering and countering the financing of terrorism. Panetta warned crypto-assets could be used for tax evasion or to circumvent sanctions.
"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 said.
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