Italian securities regulator head says crypto could negatively affect market

The head of Italy’s securities market regulator, Commissione Nazionale per le Società e la Borsa, has said the increasing use of cryptocurrencies outside of a regulated marketplace may have negative consequences.

According to a Reuters report published Monday, Consob chairman Paolo Savona called for increased regulation, saying cryptocurrencies could lead to illegal activity like money laundering, and make it harder for banks to control the supply of money and facilitate economic growth. 

“Without proper oversight there could be a worsening in market transparency, the basis of legality and rational choice for (market) operators,'' Savona said in a livestream today, as he shared the regulator’s annual report. 

“If it takes too long at a European level to come up with a solution, (Italy) will have to take its own measures,” he said. 

Increasing concern in Europe

Savona’s comments come amidst growing scrutiny from European lawmakers over digital assets. 

A few weeks ago, German regulatory body BaFin cracked down on Binance after the exchange announced its stock tokens service. In early May, BaFin rejected the exchange’s request to remove a warning that the exchange had likely violated securities laws. 

On June 11, the head of the Netherlands’ economic policy government body said the country must immediately ban the use of cryptocurrencies. According to Dutch news outlet, NL Times, he claimed the digital assets are only used because people think they will eventually overtake fiat currencies — something he said will never happen.