European Central Bank President Christine Lagarde, speaking before the European Parliament yesterday, was the first to openly call for greater scrutiny in the crypto industry, especially the DeFi sector. The conditions of crypto loan company Celsius and crypto hedge fund 3AC, which went bankrupt this month, were effective in voicing this demand.
Referring to the rapid progress of the crypto industry, Lagarde supported the need to create an interface to oversee this industry and emphasized the importance of the Crypto Asset Markets (MICA) law, which is planned to come into effect within the borders of the European Union by 2024.
Lagarde emphasized that the continued uncertainty in the crypto industry poses a risk to consumers, noting that the lack of regulation opens the door to fraud, false valuation claims, and often speculation.
European Central Bank sees DeFi as a real threat to financial stability
According to Christine Lagarde, President of the European Central Bank, the decentralized finance sector is a real risk factor for financial stability. That's why Lagarde thinks it would be extremely beneficial to closely monitor and regulate the DeFi industry in a separate framework.
In one part of her speech, Christine Lagarde also mentioned Bitcoin and said that the largest crypto asset is not an identifiable issuer, and with this structure, it will not be included in the scope of MICA I. However, Lagarde mentioned the necessity of including Bitcoin in the second phase of the regulatory laws, which are planned to be expanded in the future. The President of the European Central Bank was on the agenda last month, saying that he thinks that cryptocurrencies, especially Bitcoin, have no value, but only gain value due to speculative movements.
India government to discuss sales tax for cryptocurrencies next week
According to local news, a ministry panel in India will meet next week to discuss the goods and services tax on cryptocurrency transactions. The panel, made up of federal and state finance ministers, is seeking to expand the tax network to more effectively monitor transactions in virtual digital assets. It's unlikely that the panel will set a rate at its next meeting, but rumor has it that the top tax bracket, 28%, could be taxed.