By 
Mário Centeno, the governor of Banco de Portugal, has joined the growing chorus of regulators advocating for a global framework to regulate cryptocurrencies, asserting that national efforts alone would not be sufficient.
In his opening speech at the 2023 Banco de Portugal Financial Stability Conference on October 2, Centeno called for international cooperation to establish a “robust framework” to prevent potential “regulatory arbitrage,” emphasizing the limitations of regulating global risks and international players solely at the national level.
Centeno expressed concerns about the long-term viability of crypto assets and decentralized finance, citing an “undeniable risk” associated with them. He questioned their democratizing potential and even their survival, noting that the popularity surge of these volatile products during the COVID-19 pandemic had proven unsustainable and resulted in the collapse of several projects.
While praising the European Union’s introduction of the Markets in Crypto-Assets (MiCA) regulations as a comprehensive crypto framework, Centeno stressed the need for further international coordination in regulating the crypto space under the principle of “same risk, same regulation.”
This sentiment aligns with recent statements by the executive director of strategy, policy, and control at the German Federal Financial Supervisory Authority, Rupert Schaefer, who highlighted the progress made in regulating crypto with the adoption of MiCA within the EU but raised concerns about global regulatory inconsistencies.
In August, Indian Prime Minister Narendra Modi also called for global collaboration in formulating cryptocurrency regulations during the annual G20 summit.
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