BY LEVI JOHNSON
Italy has called for proper financial regulation for the cryptocurrency space, stressing that without proper oversight, there could be a worsening in market transparency.
The chairman of Italy’s financial regulator raised these concerns over the cryptocurrency market without proper oversight.
Paolo Savona, the chairman of the Commissione Nazionale per le Società e la Borsa (Consob), on Monday, said the government authority of Italy who is responsible for regulating the Italian securities market should take action.
He warned that cryptocurrencies if not regulated it could be used in criminal activities, such as tax evasion, money laundering, funding terrorism, and kidnapping.
While presenting the watchdog’s yearly report, Savona posited that without proper oversight, there could be a worsening in market transparency, the basis of legality and rational choice for (market) operators.
According to him, there are some 4,000-5,000 cryptocurrencies in circulation without any form of real regulation.
“If we add to this Consob’s recent own experience in closing down in Italy hundreds of websites illegally gathering savings, the picture that emerges is worrying.
”If it takes too long at a European level to come up with a solution, (Italy) will have to take its own measures.”