Crypto assets need to be regulated at a global level, ECB’s De Guindos says

MADRID, Dec 19 (Reuters) – European Central Bank Vice-President Luis de Guindos said on Monday that crypto assets need to be regulated at a global level to avoid loopholes in the financial system.

“Regulation is necessary but it is necessary at a global level,” De Guindos said at an event in Madrid.

On November 11, crypto exchange FTX filed for bankruptcy, leaving an estimated 1 million customers and other investors facing total losses in the billions of dollars.

The collapse reverberated across the crypto world and sent bitcoin and other digital assets plummeting.

ECB’s Vice-President Luis de Guindos added that the European Central Bank is not planning to change its mid-term price stability goal and will stick to its 2% target,.

“I can say that we are not going to review it, even less so when our inflation is at 10%,” De Guindos said at an event in Madrid.

“It would send a message that would generate a lot of uncertainty and central banks rely on their credibility (…) that is the last thing we should do,” he said.

Photo- Vice President of the European Central Bank (ECB) Luis de Guindos . EPA-EFE/ARMANDO BABANI