Here is what you need to know in regards to the Chief of the Bank of Portugal's push for global cryptocurrency regulation.

Here is what you need to know in regards to the Chief of the Bank of Portugal's push for global cryptocurrency regulation.Mário Centeno, the governor of Banco de Portugal, has urged international collaboration to create a global framework for cryptocurrency regulation.He claims that because of the nature of digital assets—which can result in regulatory arbitrage, opening up opportunities for bad actors to profit—national efforts alone cannot protect investors.speaking on October 10th at the 2023 Banco de Portugal Financial Stability Conference. Following recent market crashes that resulted in billions of dollars in losses, Centeno praised the Markets in Crypto Assets (MiCA) regulations and criticized some crypto products.On the MiCA, he praised the strong regulatory system and the way that nations are promoting domestic compliance with the law's requirements.He advocated for the idea of same risk, same regulation" because the market is still relatively new and he believes in group efforts.Continuous innovation, a greater reliance on digital platforms, and the emergence of mixed-activity groups are driving the current financial landscape's increasingly rapid evolution. It would be naive to think that regulating and overseeing these international risks and players at the national level will be sufficient. \".Regulators would need to strike a balance between effective regulations and restricting market innovation, he continued.Other regulators have called for a global framework where governments can work together to harmonize legislation on a global scale.The Indian Prime Minister urged the G20 leaders to adopt a framework in accordance with the recommendations from the Financial Stability Board (FSB) and the International Monetary Fund (IMF) this year.There are some unsustainable" cryptocurrencies.The bank's CEO demanded global regulation while also pointing out that while crypto assets have some benefits, such as lower costs and international reach, the larger market raises some issues.The majority of digital assets reached all-time highs during the COVID-19 pandemic, he continued, but have since proven to be unsustainable due to falling prices and project implosions in recent years.Examples include the Terra network's explosions and the infamous FTX crash, which destroyed billions of dollars' worth of market value and resulted in regulations around the world on bottlenecks.Crypto-assets and decentralized finance, or DeFi, are two examples of this risk. Although supporters of cryptocurrencies and DeFi claim that their technologies will democratize finance, it is unclear whether this claim will come to pass, especially given how highly technical this industry is.Last but not least, he made mention of how European regulators have not remained silent, resulting in the ideal fusion of traditional finance and decentralized finance (DeFi), even though it is unclear whether digital assets will be around for the long term..