The FCA and the Governor of the European Central Bank Christine Lagarde have taken a stand on the regulation of cryptocurrency bitcoin, reports Financial Times.
Bitcoin has caused a headache for European regulators due to both rapid fluctuations in value and suspicions of money laundering linked to the cryptocurrency.
The FCA described the uncertainty surrounding bitcoin earlier this week, bluntly stating that anyone investing in cryptocurrency should be prepared for losing all their money in the project.
ECB Governor Lagarde shares the concerns of the British supervisor. He notes that criminal investigations into bitcoin have clearly shown that cryptocurrency has been exploited for money laundering.
“If there are loopholes, they are used. If that shows the need for global co-ordination, multi-directional action, ”says Lagarde.
The President of the ECB therefore calls for the rules of the cryptocurrency to be jointly agreed at global level, possibly between the world’s most advanced economies, the G7 or the G20.
The price of Bitcoin rose more than 300 percent last year. As early as the beginning of January, the price of cryptocurrency rose by 40 percent and reached its highest price level so far, more than $ 40,000. Since then, the price has fallen by almost 20 percent without a back indicator.
Lagarde’s output has not been overlooked in Finland either. SDP MEP, former Member of Parliament and Speaker of Parliament Eero Heinäluoma took a stand on cryptocurrency risks on his Twitter account.
“An important statement from ECB President Lagarde on the Bitcoin debate. Bitcoin involves risks of financing criminal activities and money laundering. A significant threat – better regulation is needed both to manage digital currencies and to stop money laundering, ”Heinäluoma writes.
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