Author – Sam Reads, UK
The head of the International Monetary Fund, Christine Lagarde, recently warned that the international community and regulators should take early action on the cryptocurrencies. She further said that digital currency regulations are “inevitable.”
IMF purpose is to help nurture global financial stability by raising concern on social economic issues. Lagarde raised the IMF’s concerns as the digital currencies are soaring and experience market price swing with much of the proceeds is associated with illegal financial practices. The IMF managing director did not call for a total ban, but the introduction of regulations that focuses on the legality of transactions to prevent money laundering and terrorism financing.
In the CNN Money interview, reported by Coindesk she said:
“We are actively engaging in anti-money laundering and countering the financing of terrorism. And that reinforces our determination to work in those two directions.”
The interview comments follow a string of other comments and opinions on the cryptocurrencies. Most of the comments show approval of the underlying technology the blockchain and need to seriously handle the digital currency world. Last year, Lagarde stated that cryptocurrencies should be taken seriously globally as it can lead to an unseen market disruption.
Other influential leaders have voiced their concern about the legitimacy of the coins. Some crypto-critics called referred them as bubbles waiting for a burst. JPMorgan and other large banks in the United States issued credit card ban on all cryptocurrency transactions to cut their risk exposure. However, the Bank issued a memo that the bitcoin and other cryptocurrencies are here to stay.
Chinese regulators have recently mounted pressure on the crypto market by introducing crypto exchanges ban, ICOs token Ban, ad ban and restricted access to foreign exchanges. They aim to block access to the crypto market entirely by use of special firewall measures.
The United States Treasury called for Global Crypto Regulation. Most regulators are taking a cautious approach on the cryptocurrencies, hoping to support innovation in the financial sector. U.S. Treasury’s Office of Terrorism and Financial Intelligence stated that the international community to coöperate on creating strong regulations to protect mainstream financial sectors and strengthen their national security.
The regulations should help make sure that people are anti-money laundering (AML) and combatting the financing of terrorism (CFT) compliant in all their crypto dealings and closing loopholes that rogue regimes, drug lords, terrorists and other illegal operator hide their ill-gotten gains. Using the Petro cryptocurrency as an example, cryptocurrencies might lead to suppressive regimes navigating financial sanctions and continue to finance their illegal financial operations.
U.K. Prime Minister Theresa May, U.S. Treasury Secretary Steven Mnuchin and French President Emmanuel Macron shared the same opinion on global coöperation on crypto regulation.
