Some experts now believe that international monetary authorities are on their toes as they witness bitcoin and the rest of cryptocurrencies grow persistently, moving towards mainstream adoption.
Stefan Ingves, governor of Sweden’s Central Bank, Riksbank, shared some sentiments regarding the matter this week, saying the rising popularity of digital assets raises the stakes for regulators, central bankers, and lawmakers worldwide.
“When something gets big enough, things like consumer interests and money laundering come into play. So there’s a good reason to believe that regulation will happen,” Ingves said.
A very daunting task
Even with that being said, pundits consider devising a regulatory framework for an asset that was actually designed to go beyond the architecture, rules, and regulations of traditional finance not easy and a very daunting task.
Randal Quarles, the Vice Chairman of Supervision for the Federal Reserve, recently aired his concerns regarding the inadequate regulatory provisions for cryptocurrencies. His actions implied the agency is in the process of looking into the best possible ways to address the issue.
Such concerns were raised in the same week when the cryptocurrency market exhibited once again its extreme volatility, highlighted by bitcoin temporarily losing $15,000 of its value in one steep fall.
Move for worldwide crypto regulation
The European Union joins the movement seeking better regulation of the asset class, pledging to establish a comprehensive framework that will enable the uptake of distributed ledger technology and crypto assets in the financial sector by 2024.
Meanwhile, in Sweden, Financial Markets Minister Asa Lindhagen confirmed their government is already engaged in efforts to fortify regulation for cryptocurrency exchanges while also admitting that various crypto regulatory approaches still remain as work in progress at the international level.
Riksbank’s Ingves has earlier remarked that perhaps, regulations for cryptocurrencies will come at different times in different areas.
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