Investing.com – European Central Bank economist Fabio Panetta called for urgent regulation of the cryptocurrency sector and called it a “bubble that is sure to burst”, noting that, despite this, cryptocurrencies are not going anywhere yet, writes Business Insider.
“Crypto assets are not money. Many of them are just a new way of gambling,” Panetta said.
The economist called investments in digital assets and product offerings that promise users a high return, “a bubble that will certainly burst.”
Panetta pointed to the need for regulation of the cryptocurrency sector to protect consumers from the risks associated with them, to define minimum requirements for risk management in crypto firms and corporate governance, as well as to reduce the risks of launching and spreading stablecoins.
Panetta also proposed taxing crypto-assets in accordance with social costs.
It should be noted that the call for regulatory measures and stricter risk management intensified after the collapse of the algorithmic stablecoin TerraUSD earlier this year and the collapse of the Sam Bankman-Fried cryptocurrency exchange FTX, which Panetta called not just a “bubble that bursts, but a real bubble: several bubbles burst one after the other.”
— Business Insider materials were used in the preparation