Bitcoin has enabled criminal money laundering and needs to be regulated at a global level, ECB president Lagarde says
Bitcoinhas enabled criminal money laundering and must be regulated at a global level, ECBPresident Christine Lagardetold Reuters in an interview on Wednesday.
- Bitcoin is a "highly speculative asset which has conducted some funny business and some interesting and totally reprehensible money laundering activity," Lagarde said.
- "There has to be regulations and this has to be agreed upon" at a global level, Lagarde told Reuters.
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Lagarde said bitcoin is not a currency, but is instead a "highly speculative asset which has conducted some funny business and some interesting and totally reprehensible money laundering activity," according to the interview.Bitcoin isn't a currency as evidenced by its wild swings over the past few weeks, Lagarde argued. The cryptocurrency has surged more than 300% in 2020, but after topping out above $40,000 last week the digital asset dropped by more than 20%.
"There has to be regulations and this hast to be applied and agreed upon at a global level because if there is an escape, that escape will be used," Lagarde said, adding that global cooperation is needed.Lagarde sees rules on bitcoin potentially being initiated at the G7 level, then moved to the G20, and then expanded to other countries. Global regulation has been the crux of bearish bitcoin arguments in recent years, but there has yet to be significant movement on the regulatory front.
However, Treasury Secretary Steven Mnuchin did propose new rules in December that would require certain
The price of bitcoin moved up about 2% to $34,350 in Wednesday trades.Read more: An ETF expert breaks down his top 5 predictions for the industry in 2021 - including 4 funds that are among the best to buy, and why ARK Invest won't be able to repeat its dominance
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