Riksbank Governor Believes Crypto Regulation is Certain, But Exchanges & Trading Is Already Regulated
Cryptocurrencies like Bitcoin won't evade regulation, according to Sveriges Riksbank (Sweden's apex bank) boss Stefan Ingves.
Crypto Regulation Coming Soon
Sweden’s central bank governor Stefan Ingves said that Bitcoin’s popularity had caught the attention of regulators worldwide, Bloomberg reports.
“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.”
Cryptocurrencies have boomed as more investors look for ways to protect their wealth.
Given the belief that these digital currencies are better stores of value than traditional fiat and precious metals like gold, the industry rode the high waters with Bitcoin surging 90%, leading the crypto market to its first trillion-dollar valuation in just 12 years.
The shift to digital forms of financial settlement has caught the eye of regulators like Ingves.
However, the Riksbank boss noted that regulatory oversight of the burgeoning industry would likely come at different times in different areas.
Echoing the thoughts of her counterpart, Sweden’s Financial Markets Minister Asa Lindhagen noted that the Nordic nation is working on tightening regulatory standards for crypto exchange platforms.
However, she said regulation of these exchanges was a work in progress at the international scene.
Lindhagen also spoke on the need to address money laundering risks in the crypto space, which she describes as a “very important issue” that would require cross-border cooperation to succeed.
Providing regulatory clarity in the crypto sector can be a daunting task, as US Federal Reserve’s Vice Chairman of Supervision Randal Quarles pointed out at a congressional hearing in Washington. Quarles stated that Federal officials are working on regulating the crypto sector. However, he believes the government would need time to develop a dynamic regulatory framework.
However, in a Twitter post, crypto enthusiast @VentureCoinist pointed out that the call for crypto regulations only surfaces when there is a market slump. He mentioned how the government was already regulating the sector through tax laws, compulsory KYC updates, and geo-limiting leveraged products.
Crypto Still Has Supporters
The regulatory uncertainty surrounding cryptocurrencies is not a problem for Asian giant China. In a fresh burst of sanctions, Chinese regulatory agencies have called for the end of crypto payments in the country. This is following renewed efforts to stop Bitcoin mining in its Inner Mongolia region.
Australia’s Financial Services Minister even stated recently that the government wasn't considering a crypto ban in the country.
Canada has enabled institutional investments in the digital asset space through the approval of Bitcoin and Ethereum exchange-traded funds (ETFs). So far, the region boasts of eight crypto ETFs in the country.