The governor of Sweden’s central bank says that given its sheer popularity, which continues to grow, Bitcoin will face tighter regulation. “When something gets big enough, things like consumer interests and money laundering come into play,” said Stefan Ingves, governor of the Riksbank.
Stricter regulation expected for Bitcoin
Stefan Ingves, the governor of Sweden’s central bank Riksbank, said Monday that because of their sheer popularity, Bitcoin and other cryptocurrencies are unlikely to escape regulatory oversight, Bloomberg reported.
Although regulators have raised their concerns about Bitcoin and other cryptocurrencies, they continue to grow in popularity. They have attracted the biggest financial institutions to get into the space, including major investment banks Goldman Sachs and Morgan Stanley, who are now offering crypto investments to their clients. A growing number of companies are now accepting Bitcoin for payments, offering crypto-related services, and putting BTC on their balance sheets. Goldman Sachs recently said that bitcoin has become a new asset class as institutional demand for the cryptocurrency is huge. Bitcoin’s market capitalization recently exceeded a trillion dollars.
Governor Ingves said:
When something gets big enough, things like consumer interests and money laundering come into play. So there is good reason to believe that [regulation] will happen.
Sweden’s Minister for Financial Markets, Asa Lindhagen, announced that the government was already working on tightening standards for crypto exchanges, the publication said. However, she noted that it was “an international work in progress” and pointed out that cross-border cooperation with other governments was needed to combat the risk of money laundering with cryptocurrencies.
Riksbank Deputy Governor Per Jansson on Tuesday raised concerns that the price of Bitcoin and other cryptocurrencies would continue to fluctuate excessively and that they had “nothing concrete or substantial” to substantiate their real worth.
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