- Bitcoin and other cryptos are unlikely to escape regulatory oversight.
- The People’s Bank of China said that they’re not allowed to accept crypto payments.
- Government is already in the process of tightening standards for crypto platforms.
Bitcoin and other cryptos are unlikely to escape regulatory oversight as supervisory authorities reply to the sheer popularity of the situations, as per the Governor of Sweden’s Central Bank.
Moreover, through monetary policy officials have pointed near-universal skepticism to Bitcoin. More so, crypto has continued to develop an enthusiastic following. However, this has prompted some big names in finance to move in, as Wall Street banks namely Goldman Sachs Group Inc. offer trading services connected to crypto.
Riksbank Governor Stefan Ingves said,
When something gets big enough, things like consumer interests and money laundering come into play…So there’s good reason to believe that [regulation] will happen.
More so, it’s far from clear how to regulate a product that’s designed to evade the scrutiny of national authorities. But governments are already trying, with China, in particular, stepping up pressure on crypto loyalists. Moreover, the People’s Bank of China recently told financial institutions that they’re not allowed to accept cryptocurrencies for payment, which followed a crackdown on crypto mining. Furthermore, there are signs, though, that traders are still active, underscoring the scale of the challenge.
In addition, Fed’s Vice Chairman of Supervision, Randal Quarles explained that in the US Federal Reserve officials are in the process of knowing the various ways to address the issue. Notably, federal agencies need some time to think about the correct regulatory approach before they develop a framework for oversight.
In the European Union, the commission has referred the matter to a hearing as it aims to find the best to develop a regulatory procedure for cryptocurrencies. In September, it offers a regime for market organizational structure interested in trading cryptocurrencies.
Race of Cryptocurrency
Sweden is one of the most advanced countries in the world to create a Central Bank Digital Currency (CBDC). In addition, this is because the monetary authorities try to get ready for the disappearance of currency as a form of payment, and try to enable crypto don’t fill the void.
Even more, Ingves has estimated previously Sweden could have its own central bank e-krona in about five years. However, the regulation of cryptocurrencies will likely come at different times in different areas.
Asa Lindhagen, Sweden’s financial markets minister said the government is already in the process of tightening standards for digital asset platforms. More so, she mentioned it as a ‘work in progress at the international level’. In addition, she said that addressing the risk of money laundering that cryptos mention is a ‘very important issue’ that needs cross-border work.