{"id":22856,"date":"2025-04-09T11:49:04","date_gmt":"2025-04-09T08:49:04","guid":{"rendered":"https:\/\/forklog.com\/en\/eu-regulator-concerned-about-cryptocurrency-and-tradfi-integration\/"},"modified":"2025-04-09T11:49:04","modified_gmt":"2025-04-09T08:49:04","slug":"eu-regulator-concerned-about-cryptocurrency-and-tradfi-integration","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/eu-regulator-concerned-about-cryptocurrency-and-tradfi-integration\/","title":{"rendered":"EU Regulator Concerned About Cryptocurrency and TradFi Integration"},"content":{"rendered":"<p>The growth of the crypto industry and its integration with <span data-descr=\"traditional finance\" class=\"old_tooltip\">TradFi<\/span> structures could disrupt the stability of the global financial system, according to <a href=\"https:\/\/www.esma.europa.eu\/sites\/default\/files\/2025-04\/ESMA50-43599798-27866_Natasha_Cazenave_s_opening_statement_at_ECON_hearing_on_crypto-assets_and_financial_stability__8_April_2025.pdf\">a statement<\/a> by Natasha Cazenave, Executive Director of the <span data-descr=\"European Securities and Markets Authority\" class=\"old_tooltip\">ESMA<\/span>.<\/p>\n<p>She noted that digital assets account for only 1% of global financial assets and do not pose a significant threat to traditional markets. However, she pointed out that the interconnection between sectors, especially in the United States, is growing and requires closer attention.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cShocks, even in small markets, can become the cause or catalyst for larger stability issues in our financial system,\u201d Cazenave emphasized.<\/em><\/p>\n<\/blockquote>\n<p>The ESMA representative highlighted risks associated with stablecoins, exchange-traded crypto funds, as well as instances of hacking and major scandals such as the <a href=\"https:\/\/forklog.com\/en\/news\/ben-zhou-majority-of-stolen-bybit-funds-remain-traceable\">Bybit hack<\/a> and the <a href=\"https:\/\/forklog.com\/en\/news\/ftx-rejects-nearly-400000-compensation-claims\">FTX collapse<\/a>.<\/p>\n<p>Cazenave called for enhanced industry monitoring, despite the launch of the EU&#8217;s MiCA regulatory act, which she described as a \u201cbreakthrough.\u201d She stated that even strict regulation does not make cryptocurrencies completely safe.<\/p>\n<p>Earlier, on March 27, the <span data-descr=\"European Insurance and Occupational Pensions Authority\" class=\"old_tooltip\">EIOPA<\/span> <a href=\"https:\/\/forklog.com\/en\/news\/eu-regulator-demands-full-coverage-of-insurers-crypto-holdings\">proposed<\/a> a new requirement: insurers must hold capital fully equivalent to the value of their investments in crypto assets.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The growth of the crypto industry and its integration with TradFi structures could disrupt the stability of the global financial system, according to a statement by Natasha Cazenave, Executive Director of the ESMA. She noted that digital assets account for only 1% of global financial assets and do not pose a significant threat to traditional [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":22855,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[733,1138,36],"class_list":["post-22856","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-europe","tag-opinions","tag-regulation"],"aioseo_notices":[],"amp_enabled":true,"views":"24","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/22856","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=22856"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/22856\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/22855"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=22856"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=22856"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=22856"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}