ECB seeks urgent regulation after multiple crypto bubbles burst

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ECB seeks urgent regulation after multiple crypto bubbles burst
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Crypto assets are here to stay so their regulation is urgently needed to protect investors and the stability of the global financial landscape, European Central Bank board member Fabio Panetta said on Wednesday.

Crypto investors suffered a series of blows this year from the collapse of the FTX exchange, to the crash of stablecoin TerraUSD and the decline of Bitcoin.

Unbacked crypto assets are a form of financial gambling without any socially or economically useful function, so the task is to thwart criminal activity, protect unassuming investors and save a financial system that may become increasingly intertwined with crypto assets, Panetta said.Even stablecoins, which are supposed to keep their value through ties to a pool of assets, are stable in name only, Panetta said.

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