The governor of the Swedish central bank says bitcoin will face tighter regulation as its widespread popularity continues to grow. “When something gets big enough, things like consumer interest and money laundering come into play,” said Riksbank governor Stefan Ingweis.
Strict regulation expected for bitcoin
Stefan Ingves, governor of Sweden’s central bank, the Riksbank, said on Monday that bitcoin and other cryptocurrencies are unlikely to escape regulatory oversight due to their immense popularity, Bloomberg reported.
Although regulators have expressed their concerns about bitcoin and other cryptocurrencies, they are still gaining in popularity. They have attracted the largest financial institutions to enter the space, including large investment banks. Goldman Sachs and Morgan Stanley, which now offer crypto investments to their clients. An increasing number of companies now accept bitcoin for payment, offer crypto-related services, and put B T c on their balance sheet. Goldman Sachs recently said that bitcoin has become a new asset class, seeing vast Institutional demand for cryptocurrency. The market cap of bitcoin has recently crossed one trillion dollars.
Governor Ingvais opined:
When something gets big enough, things like consumer interest and money laundering come into play. So there is good reason to believe that [regulation] What will happen.
The publication reported that Sweden’s Minister of Financial Markets, Asa Lindhagen, revealed that the government is already working on tightening the standards for crypto exchanges. However, he said it is a “work in progress internationally”, pointing out that cross-border cooperation with other governments is essential to address the money laundering risks associated with cryptocurrencies.
Riksbank deputy governor Per Jansson expressed concern on Tuesday that the price of bitcoin and other cryptocurrencies are highly volatile and that “nothing concrete or enough” has happened to reduce their true value.
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