European Central Bank President Christine Lagarde reiterated her insistence that global regulators must tighten rules to ensure that Bitcoin (BTC) comes under coordinated supervision.
In a interview At the Reuters Next conference – amid an unprecedented bull market for the experienced cryptocurrency – Lagarde argued:
“[Bitcoin] is a highly speculative asset that has led to some funny business and some interesting and totally objectionable money laundering activities. “
Although Bitcoin is pseudonymous rather than anonymous, its distributed nature and complex interaction with jurisdiction regulatory frameworks pose a challenge to international authorities. During the interview, Lagarde reportedly did not refer to specific money laundering cases involving Bitcoin, but instead alluded to her awareness of several criminal investigations into illegal activities related to its use. She told reporters:
“There must be regulations. This must be applied and agreed […] on a global level, because if there is an escape, that escape will be used. “
Lagarde has argued consistently the need for international regulation of cryptocurrenciesand claimed in 2018 that their predominance was fueled in part by the “herd mentality” among those looking for high-yielding financial products.
She took a more conciliatory tone – particularly during a less overheated crypto market – in September 2019. At the time, Lagarde balanced the need to mitigate crypto’s potential risks through tougher regulation while recognizing the potential for ‘wider social benefits’ . of innovation ‘that could be achieved through let the space develop.
Lagarde, meanwhile, has hinted that it could grab the eurozone up to four years before it potentially launches a digital euro.
Despite Brexit, the European Union and Great Britain seem to be on the same page when it comes to private cryptocurrency markets. In response to Bitcoin’s intense volatility in recent weeks, the UK’s financial regulator posted a new warning to the public, telling them they should ready to lose everything they invest.