The EU’s incoming regulations for crypto assets will allow some of the industry’s biggest players, including exchange Binance, to escape stricter supervision and need to be overhauled, a senior European Central Bank official has warned.
Elizabeth McCaul, a member of the ECB’s supervisory board, warned in a blog on Wednesday of “gaps in the framework” for regulating crypto markets and said traditional approaches to financial market oversight might not work.
McCaul’s view reflects growing concern in Europe over the region’s ability to oversee the crypto industry, which has been marred by several high-profile scandals in recent months including last year’s collapse of exchange FTX.
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