European Central Bank’s President Calls for Strict Bitcoin Regulations
The president of the European Central Bank, Christine Lagarde, says that bitcoin is a “funny business” and it must be regulated globally because it can lead to money laundering and other financial crimes.
Lagarde was not shy in voicing her criticism, “For those who had assumed it might turn into a currency — terribly sorry, but this is a highly speculative asset which has conducted some funny business and some interesting and totally reprehensible money-laundering activity. There has to be regulation. This has to be applied and agreed upon . . . at a global level because if there is an escape, that escape will be used.”
Bitcoin’s value has increased recently. Regulators get extra cautious when there is a peak and they start to warn about the possibility of the crackdown. This week, FCA, UK’s Financial Conduct Authority has warned the authorities about the possibility of loss if they keep on investing in crypto assets.
Treasury is conducting consultations for the regulation regarding the stable coins and other crypto assets. Economic Secretary of the Treasury, John Glen states that they, “could pose a range of risks to consumers and, depending on their uptake, to the stability of the financial system”.
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However, the government is more focused on the innovations and the opportunities these innovations bring. Central Bank Europe’s President, Ms. Lagarde, spoke to Reuters about the possibility of money laundering crimes and how these digital assets have proven to be a source of illegal activities. She says an investigation is to be carried out to look into these illegal activities related to crypto-assets. Earlier this week, the German police have taken down a dark web market that was allowing the trade of cryptocurrency with drugs. Half a million people participated in such trade.