PARIS (Reuters) – Countries that have been slow to develop regulations for crypto assets could create arbitrage risks that players operating globally could take advantage of, the governor of France’s central bank said on Tuesday.
The European Union, which has always sought to become a global standard setter, proposed in July that companies obtain licenses and provide customer guarantees to issue and sell digital tokens in the 27 group of countries .
But cryptoassets, such as cryptocurrencies such as Bitcoin, remain largely unregulated globally.
French central bank governor François Villeroy de Garau said he hoped EU regulations would be formally adopted by March next year, adding that other unnamed ” Major jurisdictions’ progress was slower.
“We should be very careful to avoid adopting different or contradictory regulations, or it’s too late,” Villeroy told a conference on digital finance in Paris.
“Doing so creates an unfair playing field and risks arbitrage and cherry picking,” he said, adding that “overcomplicated” Regulations may fail to protect customers and prevent money laundering.
The EU has been pushing ahead with new crypto asset regulations, while the US is still looking for loopholes in its rules.
