President Of The European Central Bank Christine Lagarde Will Tighten Crypto Supervision

JAKARTA The collapse of the crypto exchange giant FTX has harmed digital asset investors. This condition encourages policy makers to tighten supervision of the crypto market.

President of the European Central Bank (ECB) Christine Lagarde has called for further crypto surveillance. Lagarde claims crypto stability and efficacy have been exploited by the collapse of the crypto company which was followed by a hack worth US$450 million from FTX. On the other hand, the theft of the funds was allegedly carried out by the FTX itself.

Previously, on October 5, 2022, EU members had passed crypto rules through the Markets in Crypto Assets (MiCA) framework. This regulation is intended to regulate the issuance and service of crypto assets. Commenting on current conditions, Lagarde believes there should be a MiCA volume II.

Launching Coinpeaker, the cryptocurrency market is in its early stages of development, with many operational changes expected along the way. Thus, the second version of the EU regulatory framework to cover the growing trend in the crypto market is wise, according to Lagarde.

Christine Lagarde has been president of the European Central Bank since 2019 and has significantly directed organizations towards digital payment services. Thus, the crypto market is expected to thrive, but market strategists estimate a longer crypto winger.

On the other hand, EU member countries are focusing on developing digital payment infrastructure using central bank digital currencies (CBDC). Lagarde explained the potential use of digital currencies for future payments.

"We have to be able to offer that, otherwise other people will take that place," Lagarde said.

The crypto bear market started in the collapse of Terra LUNA in May which dragged down major players in the industry such as Three Arrows Capital and Celsius Network. Since then the price of Bitcoin has plummeted. Then this November, the bankruptcy of FTX and partner company Alameda Research, which cost venture capital firm Sequoia and crypto loan platform BlockFi, also extended the crypto winter.