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Urging :
the regulation of cryptocurrencies globally
Portugal's cryptocurrency industry has experienced remarkable growth
driven primarily by progressive tax laws and the influx of web3 companies.
However
Despite this expansion
- a report dated 3 July 2023 reveals that only 2.6% of
- the population invested in cryptocurrencies
- which lags behind the global average.
Most recently
at the Bank of Portugal's 2023
Financial Stability Conference on 2 October
- Mario Centeno
- governor of the Bank of Portugal
- stressed the urgency of
a global collaborative framework to regulate cryptocurrencies.
Centeno cautioned against restrictions on control at the national level
and called for international cooperation to prevent regulatory arbitrage.
Centeno has expressed doubts about
the long-term viability of cryptocurrencies and decentralized finance (DeFi)
despite its rising popularity during the COVID-19 pandemic.
He noted the inherent risks and instability associated with these assets
which led to the collapse of many products.
Recognizing the EU's
commendable progress in cryptocurrency market regulations (MiCA)
Centeno urged further international convergence of regulatory efforts.
The principle of "the same risks, the same regulation" was echoed
This sentiment was recently echoed by Robert Scheffer
Executive Director of Germany's federal financial watchdog.
Schaeffer praised the EU's
adoption of MiCA but noted
the current variations in global cryptocurrency regulations.
Centeno's call for global cooperation on
cryptocurrency regulations is fully in line with the similar appeal made
by Indian Prime Minister Narendra Modi during the annual G-20 summit in August.
This common position from Centeno
- and other prominent regulators highlights
- the growing recognition of cryptocurrencies as
- a global challenge that requires a coordinated cross-border response.
As the cryptocurrency industry evolves
the discussion surrounding regulatory
frameworks is expected to intensify.
International cooperation is now
more important than ever to ensure stability
and protect global investors in the rapidly evolving cryptocurrency landscape.