{"id":63313,"date":"2022-06-22T18:09:29","date_gmt":"2022-06-22T15:09:29","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=63313"},"modified":"2025-09-05T23:21:17","modified_gmt":"2025-09-05T20:21:17","slug":"ecb-chief-calls-for-oversight-of-crypto-lending","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/ecb-chief-calls-for-oversight-of-crypto-lending\/","title":{"rendered":"ECB chief calls for oversight of crypto lending"},"content":{"rendered":"<p>The President of the European Central Bank (ECB), Christine Lagarde, said there is a need to regulate the crypto-lending sector.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The President of the ECB calls for a MiCA 2 <a href=\"https:\/\/t.co\/umywn7k99g\">pic.twitter.com\/umywn7k99g<\/a><\/p>\n<p>\u2014 Aurore Lalucq (@AuroreLalucq) <a href=\"https:\/\/twitter.com\/AuroreLalucq\/status\/1539246475242360837?ref_src=twsrc%5Etfw\">June 21, 2022<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Speaking to the European Parliament, Lagarde highlighted the growing activity of crypto-lending platforms. In her view, such a trend warrants additional regulatory effort by authorities.<\/p>\n<p>She referred to<a href=\"https:\/\/forklog.news\/komitet-evroparlamenta-podderzhal-zakonoproekt-o-regulirovanii-kriptovalyut\/\"> \u0437\u0430\u043a\u043e\u043d\u043e\u043f\u0440\u043e\u0435\u043a\u0442 \u043e \u0440\u0435\u0433\u0443\u043b\u0438\u0440\u043e\u0432\u0430\u043d\u0438\u0438 \u043a\u0440\u0438\u043f\u0442\u043e\u0432\u0430\u043b\u044e\u0442<\/a> <span data-descr=\"Markets in Crypto-Assets, \u0440\u044b\u043d\u043a\u0438 \u0432 \u043a\u0440\u0438\u043f\u0442\u043e\u0432\u0430\u043b\u044e\u0442\u0430\u0445\" class=\"old_tooltip\">MiCA<\/span>, adopted by <span data-descr=\"\u041a\u043e\u043c\u0438\u0442\u0435\u0442 \u043f\u043e \u044d\u043a\u043e\u043d\u043e\u043c\u0438\u0447\u0435\u0441\u043a\u0438\u043c \u0438 \u0432\u0430\u043b\u044e\u0442\u043d\u044b\u043c \u0432\u043e\u043f\u0440\u043e\u0441\u0430\u043c \u0415\u0432\u0440\u043e\u043f\u0430\u0440\u043b\u0430\u043c\u0435\u043d\u0442\u0430\" class=\"old_tooltip\">ECON<\/span> in March 2022. In her view, given the current events in the industry, there is a need for &#8216;MiCA II&#8217; to oversee staking and lending in digital assets.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Innovations in these uncharted and untested territories expose consumers to risk, where lack of regulation often leads to fraud, bogus valuation claims, and, very often, speculation,&#8221; Lagarde said.<\/p>\n<\/blockquote>\n<p>She added that decentralized finance poses a &#8220;real risk to financial stability&#8221;. Consequently, the sector should fall within the regulatory perimeter, Lagarde concluded.<\/p>\n<p>Lagarde&#8217;s remarks came amid adverse developments in the industry. On June 13, the crypto-lending platform Celsius<a href=\"https:\/\/forklog.news\/tsena-tokena-celsius-obvalilas-na-50-na-fone-pristupki-vyvoda-sredstv\/\"> \u043f\u0440\u0438\u043e\u0441\u0442\u0430\u043d\u043e\u0432\u0438\u043b\u0430 \u0432\u044b\u0432\u043e\u0434 \u0441\u0440\u0435\u0434\u0441\u0442\u0432<\/a>, halted withdrawals, exchanges and transfers between accounts due to extreme market conditions.<\/p>\n<p>Experts say the firm&#8217;s decision may have been driven by losses from using high-risk DeFi instruments, particularly synthetic assets backed by stETH from <a href=\"https:\/\/forklog.news\/chto-takoe-lido\/\">Lido<\/a> and Wrapped Bitcoin.<\/p>\n<p>Subsequently, there were rumors about the insolvency of hedge fund <a href=\"https:\/\/forklog.news\/souchreditel-3ac-prerval-molchanie-na-fone-sluhov-o-neplatezhesposobnosti-kompanii\/\">Three Arrows Capital (3AC)<\/a>, which actively used protocols such as Aave.<\/p>\n<p>One of the largest crypto lenders and asset managers in the Asia-Pacific region \u2014 Babel Finance \u2014 <a href=\"https:\/\/forklog.news\/babel-finance-priostanovil-vyplaty-i-vyvod-sredstv\/\">said<\/a> it faced a liquidity shortfall due to market volatility and the suspension of payments and withdrawals from its own products.<\/p>\n<p>Earlier in May, Lagarde called for regulation of digital assets<a href=\"https:\/\/forklog.news\/glava-etsb-zayavila-o-neobhodimosti-regulirovat-kriptovalyuty\/\"> \u041b\u0430\u0433\u0430\u0440\u0434 \u043f\u0440\u0438\u0437\u0432\u0430\u043b\u0430 \u043a \u0440\u0435\u0433\u0443\u043b\u0438\u0440\u043e\u0432\u0430\u043d\u0438\u044e \u0446\u0438\u0444\u0440\u043e\u0432\u044b\u0445 \u0430\u043a\u0442\u0438\u0432\u043e\u0432<\/a>, noting that they are worth nothing.<\/p>\n<p>Earlier, Lagarde said that all cryptocurrencies and stablecoins meet the definition of speculative assets and that recognizing them as currencies is inappropriate.<\/p>\n<p>Read ForkLog&#8217;s bitcoin news in our <a href=\"https:\/\/telegram.me\/forklog\" target=\"_blank\" rel=\"nofollow noopener\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The President of the European Central Bank (ECB), Christine Lagarde, said regulation should cover the crypto-lending sector.<\/p>\n","protected":false},"author":1,"featured_media":63314,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[205,1410,36],"class_list":["post-63313","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-christine-lagarde","tag-ecb","tag-regulation"],"aioseo_notices":[],"amp_enabled":true,"views":"23","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/63313","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=63313"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/63313\/revisions"}],"predecessor-version":[{"id":63315,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/63313\/revisions\/63315"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/63314"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=63313"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=63313"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=63313"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}