“As crypto has gained mind and market share among institutional and individual investors over the past year, it’s natural that international regulatory bodies would increase their scrutiny and potential oversight,” said Blockchain Association executive director Kristin Smith.įor Smith, there’s no single motive as to why regulators are now beginning to push more strongly for regulation. In either case, together with recent actions from the US Treasury and Financial Crimes Enforcement Network (FinCEN), such overtures suggest that crypto is due for a legislative reckoning sooner or later, with nations using the excuse of money laundering to bring it more fully within their oversight. However, according to Chainalysis, the criminal share of all cryptocurrency activity fell from 2.1% (USD 21.4bn) in 2019 to 0.34%, or USD 10bn in transaction volume in 2020. Speaking to Reuters, she said “there has to be regulation” of crypto at a global level, mostly due to the fact that bitcoin and other coins are used for “totally reprehensible money laundering activity.” This point was brought home forcefully by remarks made in mid-January by European Central Bank (ECB) President Christine Lagarde. While a small handful of nations have already introduced specific cryptoasset legislation over the past few years, it looks as though the world’s major powers are gearing up to introduce substantial new regulations and laws. The writing is on the wall: regulation is coming for crypto.
No major changes expected in the US in at least the next few months. Some argue that the intention of regulators is to suffocate crypto and make way for CBDCs. He asserted that “the Central Bank is not affected by the fact that these types of instruments can be used for transactions,” while pointing out the authority’s main concern, which is that cryptocurrencies are “used to obtain undue gains on unwary or unsophisticated people.As the crypto industry grows, "it’s natural" that regulators would increase their scrutiny. “We are going to regulate the intersection of Bitcoin with the payment system and the exchange market,” said the current president of the country’s Central Bank, hinting at a new regulatory agenda for crypto at a digital financial conference organized by the Argentine Institute of Finance Executives (IAEF).Īccording to Pesce, who said Bitcoin “was created as a substitute transaction mechanism for money where the state did not fulfill a role,” the crypto “is not a financial asset because it does not underlie an asset nor can it generate any profitability.” But it is something to consider,” said the President, eyeballing the option from a safe distance. Many people in the world have these concerns, and that is why the project, or the system, has not yet expanded. “There is caution because of how unfamiliar it is, and because it is hard to understand how this fortune materializes. However, Fernandez remained cautious as he concluded that it is still very early to completely dive into the adoption process. “They say the advantage is that the inflationary effect is largely nullified,” added the President, also open to the idea of Central Bank digital currency (CBDC). “I don’t want to go too far out on a limb – but there is no reason to say ‘no’,” said Fernandez, while pointing out the ‘hedge’ upside of adopting Bitcoin, despite the country’s tight currency controls that drove many Argentinians to crypto mining. In an interview, Fernandez has indicated his openness to crypto, stating that there is no reason to push back against the tide.
In a recent interview, the President of Argentina Alberto Fernandez said he sees no reason to push against crypto, but in contrast to his openness, the head of the country’s Central Bank, Miguel Pesce, prepares for a crackdown on the industry.Īlready in April, the Central Bank of Argentina instructed local banks to scrutinize clients that hold cryptocurrencies and engage in business or trading activities involving crypto, but just last month, a member of the National Congress José Luis Ramón submitted a bill that would allow salaries in Bitcoin and muscle the country’s adoption process.
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