Stefan Ingves, the governor of Sveriges Riksbank, Sweden’s central bank, does not think Bitcoin (BTC) and other cryptocurrencies will be successful in dodging regulation. He shared his thoughts on June 1, signaling that Sweden might soon crackdown on the widely unregulated crypto market. Ingves believes that the rapid growth of the crypto sector will compel financial watchdogs to come up with crypto regulations.
According to him, the vastness of the crypto industry brings concerns over consumer interests and money laundering into focus. As such, regulators will work on regulating the budding asset class to tackle such issues. Erik Thedeen, the head of Finansinspektionen, Sweden’s financial regulator seconded Ingves, noting that it is quite evident that some form of regulation is needed in the crypto industry.
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Reportedly, the Swedish government is already working on introducing sterner policies to govern crypto exchanges in the country. Per Asa Lindhagen, Sweden’s financial markets minister, these policies are being worked on at an international level. She added that money laundering is a very important issue that will require the collaboration of governments across the world to address.
Regulators continue striving to find ways to govern the crypto space
Crypto regulation continues proving a tough task for governments across the globe. This is mostly because of the decentralised nature of digital assets, which shields the industry against the scrutiny of authorities.
Like Sweden, other countries are working on finding the best approach to regulate the burgeoning asset class. For instance, the Chairman of the US Federal Reserve recently said that federal entities need more time to find the best regulatory approach before developing a framework that would oversee cryptos. The EU is also grappling to identify ideal ways to deal with the industry.
While Sweden and other countries are trying to find positive solutions, China has settled for a negative approach, hoping to tame the crypto sector. The latest move towards crypto regulation saw the People’s Bank of China (PBoC) inform financial institutions that it is illegal to accept crypto as payment. On top of this, the country also cracked down on crypto mining.
Although China banned crypto trading in 2017, it has been unsuccessful in preventing citizens from trying to get their fair share of the crypto cake. Reportedly, Chinese traders have been placing secretive crypto trades to avoid legal liabilities.
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