Italy Joins the Fight against Cyberattacks, Money Laundering and Fraud in Cryptocurrency

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Italy’s central bank and securities are presently in talks with cryptocurrency service providers to increase protection against financial and cybersecurity threats, according to the words from Bank of Italy Governor Fabio Panetta. Speaking at the 31st Assiom Forex Congress on February 15, Panetta spoke about the critical topics surrounding crypto assets, digital finance, and cybersecurity risks, particularly on the subject matter of global and European regulatory frameworks.

Panetta shed light on the fact that the crypto sector is currently facing intense regulatory scrutiny worldwide, caused by concerns over money laundering and threats to financial stability. Although Europe has established the Markets established in Crypto-Assets Regulation (MiCA) to protect investors, the United States continues to take a more disintegrated approach, regulating cryptocurrencies based on whether they are classified as securities.

He mentions the contradicting regulatory strategies between Europe and the U.S., referring to a recent executive order by the Trump administration that enables a move toward integrating digital assets into the financial system. Panetta warned that crypto operators could take advantage of these regulatory gaps, potentially undermining the integrity of the global financial system. In his words:

“These differences between the U.S. and Europe will need to be carefully evaluated as the U.S. authorities’ stance becomes clearer, to fully grasp their international implications,” he noted.

During his address, Panetta spoke about a collaborative effort between the Bank of Italy and Consob, Italy’s securities market regulator. The partnership aims to address the risks in the financial sector, particularly as more users turn to digital platforms for banking services. The central bank is working to ensure that crypto service providers having plans to operate in Italy need to put robust measures in place to manage strategic, operational, and financial risks, as well as risks related to money laundering and the evasion of international sanctions.

Panetta also expressed concerns about the potential expansion of Big Tech companies into the crypto space. He cautioned that if tech giants were to issue widely accessible digital tokens, it could disrupt the traditional banking system. As he says:

Commercial banks could lose a significant portion of their operations,” he warned, emphasizing the risks to the fiat financial system if privately issued tokens gain widespread acceptance.

In conclusion, Panetta’s remarks spoke about the need for well-structured global regulations to tackle the evolving challenges caused by cryptocurrencies and digital finance, while assuring the stability of the financial system and traditional banking.
Detailed information gotten from Cointelegraph

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