- Italy’s stock market regulator raised concern over the unregulated crypto market.
- He said this could damage the way the market works.
On Monday, the head of Italy’s stock market regulator raised concern over the unregulated crypto market. He said the spread of cryptos without any precise regulation is a cause for concern. And could damage the way the market works.
According to Paulo Savona, Italy’s stock market regulator, the continued spread of cryptos without consistent regulation is a cause for concern.
Further, Paulo Savona noted cryptos could damage the way the market works. Also, He added, they could even weaken central banks’ ability to handle monetary policy.
In addition to these concerns, he showed similar cases over their ability to help illegal activity such as money laundering.
During the presentation of the watchdog’s yearly report, the chairman of Italy’s financial regulator, Paulo Savona, said,
Without proper oversight, there could be a worsening in market transparency, the basis of legality and rational choice for (market) operators.
Moreover, Savona said there were some 4,000-5,000 cryptos in circulation. These are without any form of real regulation.
If we add to this Consob’s recent own experience in closing down in Italy hundreds of websites illegally gathering savings, the picture that emerges is worrying,
Savona said. Also, he warned that the currencies could be a shield for illegal activities. This includes money laundering, tax evasion, funding terrorism, and kidnapping