Regulation of digital assets in the financial system has been the most daunting task for regulators worldwide. While some think that digital assets are a menace waiting to unfold, others feel that most of the traders are malicious actors. Despite this fact, one thing that remains is that Bitcoin is here to stay, and regulators can only do better in terms of laws that would guide the digital asset’s activities.
This was echoed by the President of the European central bank, Christine Lagarde, when she granted an interview on Reuters. According to the President, digital assets, especially Bitcoin, have a penchant for illegal affairs. It won’t go away due to the way it was built on anonymity.
Lagarde bemoans malicious activities carried out using digital assets
Noting that the digital asset needs to be regulated by a single law across the globe, Lagarde also said that Bitcoin suits the class of a speculative asset because of the speed at which the leading assets’ price jumps up and goes down. Concerning the digital assets in common, Lagarde feels that a body should be set up across the globe, which would set up a global law that every country should follow. “Everyone knows what Bitcoin is and the kind of activities it has been used to conduct over the years since it went mainstream.
To check these activities, the general global population has to agree and draw up law because that is the only way it can be regulated across all countries,” Lagarde said. However, the ECB president had made a previous comment to this effect when she was at the International Monetary Fund as the Managing Director. During her spell as the MD of the international organization, Lagarde wanted them to find a lasting solution to the regulation of Bitcoin and other digital assets.
ECB president is still pushing to develop a digital Euro
With the President of the ECB echoing the need for regulation across the global space, countries worldwide are sitting up and planning ways to introduce laws and regulations to check the activities of cryptocurrencies across their respective countries. Close to the end of last month, the Ukrainian parliament announced that its crypto law has already been given the green light at the first reading.
Side by side with Ukraine’s law was the news that Pakistan was drawing up a framework to check mining and crypto trading activities. However, one regulation that has seemed to generate many backlash and ill comments has been that of the FinCEN, after the body drew up what members of the crypto world described as a “ridiculous wallet rule.”
With regulators across the globe trying to educate people on some dangers of trading crypto blindly, the Financial Conduct Authority in the United Kingdom has warned traders to steer clear of investments termed “high yield,” which are always offered by crypto exchanges and firms.
To further aid them in curbing this menace, the FCA announced last year that it would scrap crypto trading, a move that has kicked to life at the beginning of this year. Despite Lagarde clamoring for a Bitcoin law, the President is still making moves for a digital euro in the coming years.