Global regulator calls for more regulation for crypto

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TL;DR Breakdown;

  • Bank for International Settlements calls for more crypto regulations.
  • Criminality is the only issue with crypto to worry about.
  • Bank says crypto is not a threat

Global regulator, Bank for International Settlements, BOIS has called for stricter regulation of cryptocurrencies by Central Banks and other financial authorities globally.

Agustín Carstens, the BOIS General Manager, made this call, arguing that digital and virtual currencies are yet to make any real impact on global finance. Carstens said these digital assets are used as a tool to dodge policies put in place by authorities.

The global regulator official said all this in an interview with CNBC on Wednesday. He said money laundering and terrorism are sectors that need serious regulation to curb as regards cryptos. He noted that crypto skeptics are skeptical because using cryptos are used to commit crimes. Carstens said, however, the virtual currency only contributes little to crime in global commerce.

The global regulator said cryptos are associated with criminality owing to their secure nature of transactions. However, intelligence and analytical firms continue to collaborate with regulators to enable more extensive forensic capabilities. Bitcoin’s traceable nature has allowed US authorities to burst certain crypto crimes, including the Nth room in 2019, a child porn syndicate.

Similarly, Darknet illegal touts who receive payment in crypto have continued to get arrested and trialed severally for criminal offenses globally.

Global regulator says cryptos are no threat

Carstens noted that cryptos are not a threat but need proper regulations to tighten loose ends. He said crypto does not threaten global finance establishments in any way. However, he said previously in 2019 that private cryptocurrencies could remove central banks from global financial architecture.

The general manager only expressed worry that he does not see any path forward for crypto dominance globally. He said that virtual currencies had not made any significant progress in terms of being used as money.

Speaking on stablecoins, Carstens said fiat pegged currencies might have little adoption as he dismissed any threat they possess to central bank-backed fiat currencies. He said regulatory issues with stable coins like Diem are tokens that require specialized laws to ensure that they are “fit for purpose.”