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Portugal Central Bank Favors Global Crypto Framework

Press Releases Crypto News BeInCrypto Portugal Central Bank Favors Global Crypto Framework

Banco De Portugal chief Mário Centeno said on Monday that crypto regulations are unlikely to work without a global framework. He argued that the principle of “same-risk, same regulation” should apply to prevent arbitrage.

In his view, while not perfect, Europe’s Markets-in-Crypto-Assets (MiCA) regulation is an important step in regulating crypto “comprehensively.” Such a regime helps standardize local rules, Centeno said.

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Whether local regulators will base rules on the type of entity or type of activity will be “an open question,” the central banker reflected in a speech at Banco De Portugal’s Financial Stability Conference in Lisbon. He added that it while decentralized finance (DeFi) promises to democratize finance, it is not clear whether this goal will become a reality.

Centeno’s speech echoes India’s Finance Minister Nirmala Sitharaman’s calls for a global crypto framework earlier this year. Before the G20 summit in Delhi, India asked the International Monetary Fund and the Financial Stability Board to develop high-level recommendations to standardize regional regulations.

Earlier this year, Pedro Borges of Mercado Bitcoin Portugal told BeInCrypto his business was fighting an uphill battle against lightly-regulated competitors. While by and large a positive for the industry, Portugal’s speed in developing crypto regulations meant his company had more overheads.

“Regulation hasn’t progressed as quickly in other countries, which forces us to face unfair competition because we see platforms – that aren’t regulated – offering a variety of services, including derivative financial products on cryptocurrencies, margin accounts, and the creation of new tokens. All of this is done without complying with the rules we are obligated to follow…We have solid regulation

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Author: David Thomas

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