Global authorities tighten control over cryptocurrencies and warn of financial risks

Source: CritpoTendencia Original Title: Global authorities strengthen control over cryptocurrencies and warn of financial risks Original Link: The People’s Bank of China (PBoC) reaffirmed that cryptocurrency operations are illegal and warned about the risks of stablecoins after a meeting with thirteen government agencies.

The PBoC stated that virtual currencies lack legal tender status and emphasized that stablecoins pose threats to financial security by facilitating money laundering, fraud, and illegal cross-border transfers.

The central bank pledged to continue strong measures against illegal activities related to digital assets, consolidating the results of the trade and mining ban implemented since 2021.

Italy sets deadline for cryptocurrency platforms under MiCA

The Italian National Securities Commission (CONSOB) announced a strict timeline for the implementation of the European Union’s Markets in Crypto-Assets Regulation (MiCA). Cryptocurrency platforms operating without the required authorization must apply for it before December 30 or withdraw from the market.

Virtual asset service providers (VASP) who submit their applications on time will be allowed to continue operating under a transitional regime until June 30, 2026. Those who do not comply must cease activities, terminate contracts, and return client funds.

The measure aims to harmonize the Italian market with European regulations, ensuring greater security for investors and legal clarity for operators.

IMF warns about stablecoin risks to monetary sovereignty

The International Monetary Fund (IMF) warned that stablecoins, although expanding access to financial services, could affect the sovereignty of central banks.

In a recently published report, the IMF notes that the rapid penetration of stablecoins via the Internet and smartphones can replace local currency, reducing central banks’ control over liquidity and interest rates. In addition, foreign currency-denominated stablecoins could hinder the adoption of central bank digital currencies (CBDC).

The organization urges countries to consider these risks before allowing the expansion of such financial assets in their economies.

Europol dismantles cryptocurrency fraud network worth over 700 million euros

Europol announced the dismantling of a criminal network involved in cryptocurrency fraud and money laundering that moved over 700 million euros through fake investment platforms.

Two waves of raids in October and November led to arrests, multimillion-euro seizures, and the shutdown of the organization’s infrastructure, which used call centers and fake trading panels to deceive thousands of victims in Europe and other regions.

According to Europol, the stolen funds were laundered through complex transactions between blockchains and exchange platforms. The operation marked the culmination of years of coordinated investigation.