IMF Said that Digital Currencies Must Be Regulated and Supervised

Discussion in 'About crypto currencies' started by andengireng, Feb 21, 2018.

  1. andengireng

    andengireng Member

    International Mentary Fund (IMF) Executive Director Christine Lagarde said it was only a matter of time before digital money or cryptocurrency was under government regulation.

    "This is inevitable, it is very clear where we need international arrangements and proper oversight," Lagarde told the World Government Summit, as quoted by CNN.com on Monday (12/2).

    Lagarde, also adds there is the possibility of digital digital money being used for illicit activity.


    He explained that his side has been actively preventing the use of digital money for money laundering and terrorism financing purposes. However, he argues, arrangements are still needed to the entity and more to the activities, such as who does what, where they get licensed and supervised.

    Most digital money transactions have so far been run unadjusted, especially since bitcoins first rolled in 2009. However, the government and the central bank are now beginning to pay attention and warn investors of potential fraud.

    In December, the US Securities and Exchange Commission, as well as the Federal Bureau of Investigation began to crack down on alleged fraud in fundraising by some digital money companies or cryptocurrency and traders.

    In Asia, where digital money is so popular, China and South Korea are both making restrictions on digital money trading. Concerns about restrictions, and rumors about potential bans in India, have triggered the volatility of digital currency exchange rates.

    The top government officials of several major countries at the World Economic Forum in Davos also signaled to issue rules related to digital money.

    "We encourage fintech, we encourage innovation, but we want to ensure that all our financial markets are safe and not used for illicit activity," US Treasury Secretary Steven Mnuchin told a press conference last month.

    British Prime Minister Theresa May added to the sentiment, saying his government would be very serious about digital money transactions, as vulnerable to criminals.

    Bitcoin exchange rate (XBT) plunged along with global stocks by 40 percent from last month. Currently, Bitcoin is trading near $ 8,350, after peaking at US $ 19,343 on December 16, 2017.
     
  2. NewbieTrader

    NewbieTrader Member

    Regulating cryptocurrencies is good. But how to monitor them while some countries are still behind in terms of technology? That's a big homework.
     
  3. Tengkorakfx

    Tengkorakfx Member

    True, homework for the country's leaders. but now information is very easy to obtain so it is possible to minimize the problem in monitoring.
     
  4. NewbieTrader

    NewbieTrader Member

    i think it will only work if those leaders are also bitcoin owners or have business related to bitcoin. if not, they wouldn't really care :p no money, nothing.
     
  5. Tengkorakfx

    Tengkorakfx Member

    Right. Since they never try this type of currency, I don't think they would consider to take part on regulating BTCs or other cryptocurrencies...
     

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