International Monetary Fund Chief Says Cryptocurrency Regulation is a Must
One of the most debated subjects when it comes to cryptocurrencies is whether this market should be regulated or not. When it comes to the answer to this question, the chief of the International Monetary Fund (IMF) seems to believe that regulation will happen sooner or later.
Christine Lagarde says cryptocurrency regulation is inevitable
The chief of the IMF, Christine Lagarde, believes that regulation is needed mostly due to the fact that the new technology behind cryptocurrencies can be used by criminals to perpetrate illegal activities. Because of the huge potential to be linked to criminal activity and the illicit use of cryptocurrencies, the IMF and other agencies are going to work at a framework for cryptocurrency regulation. Lagarde said:
“There is probably quite a bit of dark activity [in cryptocurrencies]. We are actively engaging in anti-money laundering and countering the financing of terrorism. And that reinforces our determination to work on those two directions.”
Lagarde also believes that it is the role of the IMF to take action when it comes to cryptocurrency use.
“We clearly have to move into an activity-based regulation. Forget about the entities, work on the activities themselves: who does what and who is licensed to do what and who is properly regulated and supervised.”
The fact that Lagarde has spoken against cryptocurrencies is nothing surprising. This is not the first time when she claimed cryptocurrencies could represent a major threat and a potential disruption. She also pointed to the fact that mining leads to high consumption of energy.
