Lagarde Says Crypto Regulations Are “Inevitable”
Christine Lagarde, Managing Director of the International Monetary Fund (IMF), recently stated that her organization is aware of cryptocurrencies increasingly being used to carry out illicit activities. Lagarde, who is also a highly experienced French lawyer and seasoned politician, added that the IMF has been actively working to stop digital currencies from being used to launder money or finance terrorism. She acknowledged the fact that regulators worldwide are trying to prevent the use of cryptocurrencies for illegal purposes. However, she stressed that regulators must focus more on the actual activities instead of going after different entities involved in the cryptosphere.
While speaking to CNNMoney, the IMF director remarked, “It’s inevitable…It’s clearly a domain where we need international regulation and proper supervision”. Her comments come at time when regulatory authorities across the globe have increasingly been scrutinizing cryptocurrencies. Numerous warnings have been issued by regulators regarding the potential of cryptocurrencies to be used in orchestrating high-level crimes.
Regulators Have Launched Multiple Investigations
Many people have also become a victim of a growing number of scams in the crypto-world. Therefore, the IMF, the US SEC, and the FBI have all launched investigations in order to track down criminal and fraudulent activities involving cryptocurrencies. While conducting these investigations, Lagarde wants authorities to focus on “who is doing what, and whether they’re properly licensed and supervised”.
The IMF chief’s latest comments regarding digital currencies seem to be consistent with her previous views and statements. Notably, during the World Government Summit in Dubai, she pointed out that, “There is probably quite a bit of dark activity [in cryptocurrencies]”. Other highly influential world leaders also realize that cryptos have a “dark” side and need to be probed. In fact, Theresa May, Prime Minister of the United Kingdom, stated that her government will be looking “very seriously [at cryptocurrencies] because of the way they are used, particularly by criminals.” Meanwhile, Steven Mnuchin, U.S. Treasury Secretary, voiced concerns that we need to make sure digital currencies are not being used for “illicit activities” while speaking at the World Economic Forum in Davos last month.
Even though the world’s leaders and authorities have not always been completely fair and objective in their actions and comments regarding cryptocurrencies, this time they appear to have some reasonable concerns. Moreover, there are strong indications that criminal elements are definitely present in the cryptosphere. Perhaps the most glaring sign of this is that Europol, Europe’s top law enforcement agency, estimates that up to £4 billion is being laundered by using cryptocurrencies throughout Europe.
It’s evident that there’s a dire need for authorities to weed out these criminals from the crypto realm. Not only are their actions damaging to the crypto-world, they’re also quite harmful to the general population.