European Central Bank executive board member Yves Mersch has warned that “crypto-entities” should expect to face comprehensive banking oversight once they offer banking services. His comments, which came during a speech on the future of banking, suggest the current EC regulation may not be sufficient and that more comprehensive measures may be needed to protect investors and the stability of the financial system. “Crypto-entities are increasingly seeking to provide for the payment needs of their users. This calls for proportionate and comprehensive oversight to ensure sound and prudent operations…It will be essential to consider appropriate measures covering activities such as the denomination, creation, transfer and redemption of virtual currencies, as well as the relationship with the underlyings and other forms of money,” he said. His comments suggest that the European Central Bank will set a precedent for other central banks and supervisory authorities as they seek to regulate the crypto-asset industry.
European Central Bank Official Warns: Crypto Entities to Face Stringent Banking Oversight
