Europe Urged to Streamline Crypto Regulations Rather Than Add New Ones

Martin Kocher, Austria's finance minister and a member of the European Central Bank's Governing Council, has called for a reduction in outdated financial regulations rather than the introduction of new rules for the crypto sector. Speaking at a financial oversight event in Vienna, Kocher emphasized the need to review existing frameworks, suggesting the elimination of unnecessary reporting requirements that stifle growth.

"The focus must shift to pruning redundant regulations," Kocher stated. "Simplifying the system WOULD enhance policy effectiveness and narrow risk disparities across EU member states." His remarks come amid growing concerns that Europe's regulatory complexity is putting its financial institutions at a competitive disadvantage to the U.S., where deregulation efforts are underway.

Last week's discussions among European finance ministers in Copenhagen highlighted these worries, with participants noting the bloc's banks are falling behind. Kocher argued that trimming regulatory fat would not only boost competitiveness but also improve the transmission of ECB monetary policy across the eurozone.