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IMF chief says that cryptos cannot run from regulations- they’re ‘inevitable’

Feb 13, 2018 Posted /  6533 Views

IMF chief says that cryptos cannot run from regulations- they’re ‘inevitable’

International monetary Fund chief Christine Lagarde commented that governments worldwide will soon formulate regulations to control the cryptocurrencies and says that regulations as such are “inevitable”. The top IMF official told CNN in an interview that

"It's clearly a domain where we need international regulation and proper supervision."

He further appended

"There is probably quite a bit of dark activity [in cryptocurrencies]," she added at the World Government Summit in Dubai on Sunday.

Lagarde presented her viewpoint and told the CNN media that the IMF is actively trying to thwart virtual currencies from being used for the illicit activities such as money laundering and funding of terrorist organizations. However, she debated that regulators need to converge less on entities, and more on activities and majorly questioning who is doing what, and whether they’re properly licensed and supervised.

Virtual currencies have considerably functioning in a regulatory vacuum since bitcoin's debut in 2009. Nonetheless, governments and central banks are starting to pay quicker attention, warning investors about potential scams.

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In December, the U.S. Securities and Exchange Commission and the Federal Bureau of Investigation began to crack down on alleged fraud in fundraising by some cryptocurrency companies and traders. In Asia, where cryptocurrency is specifically popular, China and South Korea have both cracked down on cryptocurrency trading. Unease about new restrictions, and rumors over a potential ban in India, has increased volatility in virtual currency prices.

Leading government officials at the World Economic Forum in Davos also signaled that more regulation could be on its way.

"We encourage fintech, we encourage innovation, but we want to make sure that all of our financial markets are safe and aren't being used for illicit activities," U.S. Treasury Secretary Steven Mnuchin said last month at the conference.

British Prime Minister Theresa May echoed that sentiment, saying that her government would look "very seriously" at cryptocurrencies "because of the way they are used, particularly by criminals."

Bitcoin (XBT) has crashed along with global stocks, increasing 40% from a month ago to trade near $8,350. It had peaked at $19,343 on December 16.

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Tags: cryptos Regulations

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