The European Central Bank (ECB) executive board member Yves Mersch issued a warning to entities using cryptocurrencies. He said that cryptocurrency and crypto-asset activity must be subject to the same stringent banking regulations as all financial entities.
Mersch said that the ECB’s mission is to ensure the smooth functioning of payment services, which includes preventing fraud and misconduct. Therefore, a regulatory framework must be maintained to ensure that cryptocurrency companies are subject to the same level of supervision and regulation as any other banking institution.
Mersch said that the European Union (EU) is now looking into ways to regulate the use of cryptocurrencies. The European Commission has already released its proposal for a regulatory framework for cryptocurrencies, which focused primarily on preventing them from being used for money laundering and terrorist financing.
The ECB executive board member also said that the ECB is working with other national regulatory authorities to ensure a coordinated approach is taken towards creating a legal framework for cryptocurrencies. He said that this framework has to be comprehensive and consistent across all EU member states.
In conclusion, Mersch said that the ECB will continue to monitor the developments in the cryptocurrency space and take appropriate action to ensure that all financial entities, including those dealing with cryptocurrencies, are subject to rigorous oversight and the same level of regulation as any other financial institution.