Cryptocurrency staking and lending services should be regulated as innovations in these “unexplored and uncharted territories put consumers at risk,” European Central Bank President, Christine Lagarde, said during testimony to the European Parliament, Fortune reports.
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Lagarde pointed out that the popularity of staking and lending services is growing, while the lack of regulation is covering fraud:
“Innovations in these unexplored and uncharted territories put consumers at risk, where the lack of regulation is often covering fraud, completely illegitimate claims about valuation, and very often speculation as well as criminal dealings.”
Although the Markets in Crypto-Assets (MiCA) regulation, which is expected to take effect across the EU by 2024, won’t cover bitcoin (EXANTE: Bitcoin), MiCA II, “will take that into account,” she said.
Earlier in May, the European Central Bank warned that institutional investors, including hedge funds and family offices, are actively increasing their investments in bitcoin and cryptocurrencies in general as big players were seeking more ways to diversify their portfolios.
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