Crypto Leverage ‘Is Only a Problem’ When it Impacts Traditional Finance: EU Watchdog

EU advisors say there’s little connection between crypto and TradFi for now, but caution the industry should still be closely monitored.

• 2023-05-25
• European Central Bank Daniel Weber ESRB

Crypto Conglomerates, DeFi Targets of EU Financial Stability Watchdog Concerns

Risks from smart contracts, high leverage and crypto staking and lending may imply a need for new regulations, the European Systemic Risk Board said

• 2023-05-25
• decentralized finance ESRB systemic risk smart contracts financial stability Christine Lagarde digital asset markets conglomerates

EU watchdog calls for curbing leverage in crypto trading

European Union authorities should curb leveraged bets on crypto assets by introducing limits for investment funds, exchanges and other firms to stop shocks in that industry from jeopardising financial stability elsewhere, an EU watchdog said on Thursday. It was one of several recommendations made by the European Systemic Risk Board, which ranged from demanding regular reports from all companies involved with crypto assets to introducing specific rules for the largest firms in that space. It fo

• 2023-05-25
• European Union investment funds crypto assets ESRB