The chief of the International Monetary Fund (IMF) has said that it’s only a matter of time before cryptocurrencies fall under government regulation.
Speaking at the World Government Summit in Dubai on Sunday, Christine Lagarde, the head of the IMF, said that it was ‘inevitable,’ reports CNN Money, adding:
It’s clearly a domain where we need international regulation and proper supervision. There is probably quite a bit of dark activity [in cryptocurrencies].
According to Lagarde, the IMF is continually trying to prevent cryptocurrencies from being employed to finance terrorism or launder money. In her opinion, however, regulators need to focus more on digital currency activities rather than entities.
With interest continuing in the cryptocurrency market global regulators have been calling for it to be regulated. This is due to concern that it is funding illegal activities and is simply in a bubble. In Asia, the trading of cryptocurrencies has gained rapid popularity. However, China and, more recently, South Korea, have cracked down on the market. Not only that, but rumours and speculation that India may be banning digital currency trading has also impact market prices.
Notably, though, while Lagarde claims that cryptocurrencies will eventually be regulated by governments, the chief supervisor of the European Central Bank, has said that regulating digital currencies isn’t a ‘top priority‘ for them.
Daniele Nouy, the ECB’s chief supervisor, said:
We scrutinize the issue in a regulatory perspective, we are ready to do something if it was needed, but so far it’s not exactly very high on our to-do list.
However, the U.K.’s Prime Minister Theresa May said at the World Economic Forum in Davos, Switzerland, that her government was looking ‘very seriously’ at cryptocurrencies due to their use by criminals.
Bitcoin, which has struggled lately due to regulatory pressure, is currently trading at $8,627, a 2.44 percent increase over a 24-hour period. It seems that regulatory fears are dying down, which is helping to push market prices back up again.