Irish MEP echos concerns from ECB Member on "wild west" crypto finance

Sinn Féin MEP Chris MacManus has supported statements from a member of the executive board of the ECB stating that crypto must act as a wake-up call for regulators.

The member of the Irish republican political party, Chris MacManus, has followed up on comments from ECB member Fabio Panetta, who talked about the “Wild West for crypto finance” in a keynote speech and the need for strict regulation and oversight of crypto-asset trading. 

The speech by Fabio Panetta on Monday was a heavy criticism of cryptocurrencies and decentralized finance, however it concluded with the ECB reiterating their support of the digital Euro, used as an “anchor” for the payment and monetary system. 

Panetta noted in his speech:

“Crypto-assets are bringing about instability and insecurity – the exact opposite of what they promised. They are creating a new Wild West.[4] To quote Littlefinger from Game of Thrones, “chaos is a ladder”. The story does not end well for this character. However, it only takes a few to climb high on the ladder – even if their gains are only temporary – to convince many others that they are missing out.”

MacManus, who is one of the key MEPs following the EU’s proposed regulation on crypto-assets, commented on the speech from the ECB member, noting:

“I welcome the timely comments from Mr. Panetta, which echo many of the concerns I have been raising. There are major issues with crypto-asset trading that we are only beginning to come to grips with.  The libertarian world-view of crypto-asset founders and traders is at complete odds with good regulation, consumer protection and financial stability. The last thing the global economy needs is a bubble similar to the subprime mortgage crisis of 2007-2008.”

The MEP from Sinn Féin has called for greater crypto regulation, last June submitting 45 amendments to the EU, following the European Union’s proposed cryptocurrency changes, aimed at toughening crypto laws. 

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