{"id":12546,"date":"2022-06-01T02:46:59","date_gmt":"2022-06-01T02:46:59","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/eu-regulator-warns-soaring-inflation-could-drive-investors-to-crypto-calls-for-unified-regulatory-framework-regulation-bitcoin-news\/"},"modified":"2022-06-01T02:46:59","modified_gmt":"2022-06-01T02:46:59","slug":"eu-regulator-warns-soaring-inflation-could-drive-investors-to-crypto-calls-for-unified-regulatory-framework-regulation-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/eu-regulator-warns-soaring-inflation-could-drive-investors-to-crypto-calls-for-unified-regulatory-framework-regulation-bitcoin-news\/","title":{"rendered":"EU Regulator Warns Soaring Inflation Could Drive Investors to Crypto \u2014 Calls for Unified Regulatory Framework \u2013 Regulation Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Europe\u2019s top securities regulator has warned that soaring inflation could drive investors to cryptocurrencies. Stressing that there is \u201can imbalance\u201d in how each EU country deals with crypto, the regulator calls for a common regulatory framework across European countries. <\/strong><\/p>\n

Inflation Could Drive Investors to Crypto, EU Regulator Says<\/h2>\n

The European Securities and Markets Authority (ESMA), the EU\u2019s top securities markets regulator, has warned that soaring inflation may drive retail investors into cryptocurrencies, Bloomberg reported Thursday.<\/p>\n

The regulator has also called for a formal legal framework to govern the crypto industry across all EU countries.<\/p>\n

ESMA Chair Verena Ross said in an interview last week:<\/p>\n

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With inflation rising, investors will look to find investments which are able to try to compensate for inflation and bring greater returns, which might lead to greater risk taking.<\/p>\n<\/blockquote>\n

\u201cThat is something we are monitoring very closely,\u201d she emphasized.<\/p>\n

Many investors believe that bitcoin is a great hedge against inflation, including famed hedge fund manager Paul Tudor Jones. However, the crypto asset is highly volatile; it has fallen 26% over the past 30 days. This month, the crypto market as a whole has shed around $500 billion.<\/p>\n

Currently, each EU country sets its own rules on crypto, making decisions based on local laws. There is no common framework for the crypto sector.<\/p>\n

The ESMA chair detailed:<\/p>\n

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There is no EU regulatory framework for these kinds of entities at the moment and so there is currently an imbalance in how national supervisors deal with these entities and how they judge them.<\/p>\n<\/blockquote>\n

\u201cThat\u2019s where a common regulatory framework will help,\u201d she stressed.<\/p>\n

Last month, the European Parliament granted<\/a> ESMA power to regulate crypto issuer and service providers.<\/p>\n

The European Parliament and the European Council are currently considering the Markets in Crypto Assets (MiCA) bill. The legislation, introduced in 2020, provides a legal framework for crypto asset markets to develop within the EU.<\/p>\n

What do you think about the ESMA chair\u2019s comments? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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