The world’s leading cryptocurrency by market cap, Bitcoin has become too big of an asset to escape regulatory frameworks, argued the governor of Sweden’s central bank – Stefan Ingves. At the same time, the nation’s finance minister also confirmed that the country is already looking into implementing tighter rules around cryptocurrency exchanges. Regulators worldwide are actively working on regulating the growing cryptocurrency market, which has gained massive mainstream exposure this year.
More regulatory oversight of cryptocurrencies is in the pipeline.
During a recent speech cited by Bloomberg Stefan Ingves, the Governor of Riksbank, Sweden’s central bank, said that cryptocurrency’s rising popularity 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 good reason to believe that [regulation] will happen,” Riksbank governor said. However, only a very few countries have proposed any clear regulations on the cryptocurrency market. The US, for example, has struggled for years, and the latest proposals from FinCEN were paused after the Biden administration took control.
Central banks continue to thrash bitcoin.
Global central bankers have been openly bashing the leading cryptocurrency as of late, especially following the massive volatility bitcoin experienced in May. Earlier, the governor of Danmarks Nationalbank, Lars Rohde, described the entire industry as a “speculative fad” as “there is no stability and no guarantee from any side” about its value. His comments came shortly after Andrew Bailey, the Bank of England governor, warned current and future investors that they have to be prepared to lose all their money if put in bitcoin. The Chairman of the Federal Reserve, Jerome Powell, also joined other central banks and dismissed bitcoin’s qualities to serve as a global store of value and medium of exchange due to its high volatility.