Bank of France Governor Calls For Swift Global Crypto Regulation

Bank of France governor Francois Villeroy de Galhau has called on all countries to keep up with the crypto regulation process not minding the crypto winter. 

He pointed out that countries that lag in creating a crypto regulatory framework, would eventually create access to arbitrage risks. Once spotted, crypto players would exploit such territories. 

“The so-called ‘crypto-winter’ is no reason for complacency or inaction,” the governor said.

Villeroy who is also a member of the European Central Bank (ECB) Governing Council noted that many jurisdictions had not adopted any form of regulation for digital assets. Bitcoin (BTC), which is the most widely recognized digital asset and the largest by market trading volume, is yet to be regulated in certain territories.

Europe has put great effort into developing a digital assets regulatory framework. The most important European Union crypto regulation guidelines known as Markets in Crypto-Assets (MiCA) have been undergoing a series of touch ups and amendments. Accordingly, MiCA is finally in its last phase before it gets published in March 2023.

Crypto Regulation to Kick Out Arbitrage Risks

While the EU crypto framework is advancing, the United States is in the middle of picking out loopholes in its crypto regulation. Recently, the Commodity Futures Trading Commission (CFTC) has been lobbying for more control in the U.S crypto market.

Meanwhile, some other jurisdictions have not kicked off their process at all. “We should be extremely mindful to avoid adopting diverging or contradictory regulations, or regulating too late,” he said.

Villeroy continued, “To do so would be to create an uneven playing field, risking arbitrage and cherry picking.”

The suggestion by Villeroy is crucial at this time when customers and other crypto enthusiasts are seeking more advanced means of making payments. Christine Lagarde, the president of the ECB stated that financial institutions would have to meet up with the present demands to retain control over the sector as the case may be.

“We have to respond to the demand for those digital payments in order to maintain the role of anchor we have been playing,” she said.