Italy has started to perpetuate a negative vibe for cryptocurrency markets and investors. The local securities commission of the country known as Commissione Nazionale per le Società e la Borsa or CONSOB has declared some severe reservations about the increasing crypto trading in the region. As per reports, CONSOB officials claim that digital assets are a gateway for criminal activities and hamper negative ramifications for legal and financial reasons.
The commission has been serving as a central securities regulator in the region since 1974 and holds power over the Borsa Italiana or Italian Stock Exchange. As noted by Reuters, the chairperson of CONSOB, Paolo Savona, declared that the DeFi space encourages monetary crimes and enables the activities of threat actors. He claimed that due to the decentralized nature of digital assets, they have become a challenge for banks in terms of money supply control and are often exploited for illicit activities like money laundering.
Italian Stock Exchange Chairperson Claims that Market Transparency is Worsening due to Blockchain Projects
Paolo Savona is the current chairperson of CONSOB; in a media briefing, he claimed that blockchain-based currencies are gaining popularity by providing people with perfect anonymity. Without this basic factor, it is not possible to imagine the existence of most of the prevalent blockchain currencies in the crypto market. However, the lack of central regulators and legal supervision makes digital assets a hindrance to achieving complete market transparency.
He further added that there is little room for regulatory grounds and rational choices for crypto stakeholders. These abrasive remarks come to light as Savona hosted a live stream for disclosing the annual report of CONSOB. He ended his remarks with a warning claiming that if the central authorities of Europe would not take any measures soon enough, Italy would proceed to introduce strict regulation for crypto markets on a regional level.
The Crypto Unrest in Europe is on the Rise
European lawmakers and regulatory bodies have started to show visible signs of unrest towards the rapid rise of crypto adoption. Last week, the Netherland economic development agency head called for a blanket ban on digital markets and trading in Dutch territory. As noted by local news outlet NL Times, he claimed that Graham’s law would be applied in reverse on cryptocurrencies and still categorized digital assets as bad money.
In the same fashion, German stock regulation organization BaFin got in a legal feud with Binance last month. Binance is one of the largest crypto exchange platforms in the world. However, when the Hong Kong-based exchange decided to introduce a stock token service, it was blocked by BaFin. The German regulation organization has also refused to ignore the legal indictment that Binance is violating regional securities laws.