The president of the European Central Bank (ECB) believes that there is a need to effectuate more regulation on the leading cryptocurrency
According to the ECB President Christine Lagarde, there’s more to be done in terms of global regulation of Bitcoin (BTC). Lagarde posited her take on BTC and the surrounding policies while speaking at the Reuters Next conference yesterday. The president pushed for Bitcoin regulation emphasising that it would help reduce criminal activity involving the asset.
She acknowledged that Bitcoin is indeed a rewarding asset but argued that it has a history of being used in money laundering. It is for this reason that Lagarde feels it is necessary to adopt more global regulations around the digital asset.
Reuters wrote on Twitter, “ECB President Christine Lagarde called for global regulation of #Bitcoin, saying the digital currency had been used for money laundering activities in some instances and that any loopholes needed to be closed”.
The ECB president did not point out specific cases of money laundering. She, however, shallowly revealed that there have been past criminal investigations into the activity. Some may feel that Lagarde is not a proponent of Bitcoin but the ECB president has in the past shown interest in CBDCs and the digital euro.
Lagarde is the latest figure to call for crypto regulation. Several regulators have also voiced similar concerns in the recent past. Though some anti-money laundering practices and guidelines have been introduced in the crypto space previously, a large part of the industry remains unregulated.
“There has to be regulation. This has to be applied and agreed upon…at a global level because if there is an escape, that escape will be used.”
Lately, BTC has received a lot of focus following its epic price rally. Bitcoin, currently the talk of the town, shot up to a new all-time high in the region of $42,000 earlier this week. But beyond the value end, the crypto has gained negative attention as criminals use it to facilitate their activities.