Portugal Gives Support to EU Legislation on Crypto Regulation

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The European Union is taking steps to regulate the use of cryptocurrencies with the MiCA legislation.

One of these steps is requiring banks to disclose information on the reserves they hold in digital currencies.

This move, according to the EU, aims to mitigate any potential risks to the financial system within the union.

Portugal is in support of this regulatory framework, but believes that oversight of cryptocurrency transactions should also happen on a global scale.

Speaking at a conference on financial stability, the head of the Central Bank of Portugal, Marco Centeno, emphasized the need for the legalization of the crypto market.

He also stated that any regulatory framework should adhere to existing standards of security and transparency.

The DeFi decentralized finance market, which has seen an increase in token holders, also requires regulation.

Centeno expressed support for politicians advocating for the use of a universally accepted mechanism to combat money laundering in legislation on digital assets.

The use of cryptocurrencies has become more popular during the pandemic, but the market crash has resulted in losses for many investors. Therefore, states must develop a system to protect investors as soon as possible.