On Tuesday (May 24), the European Central Bank (ECB) published a report flagging possible financial stability risks in the future if crypto assets continue to grow at the same pace. A group of EU lawmakers are using a week without parliamentary sessions to travel to Silicon Valley to meet tech companies and authorities to learn about latest tech developments and to discuss policies. India’s Central Bank Governor also issued warnings about the risks of cryptocurrencies.
ECB: Crypto Could Shake Financial Stability
Financial stability is at risk as crypto-assets become more entangled with mainstream markets, the European Central Bank (ECB) said in its financial stability review on Tuesday (May 24).
The ECB pointed to the recent crashes of stablecoins Terra and Tether, calling them not as “stable as their name suggests and cannot guarantee their peg at all times.”
EU Parliament Meets Big Tech in Silicon Valley
A delegation of the European Parliament met with executives from tech companies including Google, Meta, Apple, Airbnb, eBay, PayPal and Uber to discuss the latest digital market advances, but also to get a closer look at the U.S. legislative work on eCommerce and platforms.
The meeting likely won’t be limited to the topics mentioned in the official press release. Taxation and data control could be also part of the conversations with authorities.
India’s Central Bank Governor Warns about Crypto after Stablecoin Collapse
The governor of the Reserve Bank of India (RBI), Shaktikanta Das, has been the latest top official warning about investing in crypto markets. Das discussed the crypto market downturn and the regulation of crypto assets in an interview with CNBC TV18.
“We have been cautioning against crypto, and look at what has happened to the crypto market now,” the governor said.
Global Digital Tax May be Delayed to 2024, France’s Minister Says
A global digital tax deal might not be ready until the end 2023 or early 2024, French Finance Minister Bruno Le Maire said on Tuesday (May 24), flagging a big delay to the reform’s implementation, Reuters reported.
The deal, which officials had hoped to sign off on at the middle of this year, aims to reallocate rights to tax big digital groups such as Apple and Google to the countries where the end clients are located.
CFPB Calls on States To Expand Enforcement Efforts
On Thursday (May 19), the Consumer Financial Protection Bureau (CFPB) issued a new interpretative rule seeking to bolster the states’ enforcement actions to protect consumers. By clarifying the scope of state enforcement under the Consumer Financial Protection Act of 2010 (CFPA), the bureau expects states to take a more active role in protecting consumers “from financial fraud, scams and other wrongdoings.”
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