[ad_1]
Top line
Financial regulators in Sweden and the United States both hinted at impending crackdowns on largely unregulated cryptocurrency markets over Memorial Day weekend, noting the lack of a cohesive framework. for new technology, the specter of financial crime and the risks to consumers posed by crypto exchange platforms, which a number of UK banks have reportedly prevented customers from transferring money.
Officials warn that stricter cryptocurrency oversight is looming.
Getty Highlights
Michael Hsu, the new acting currency controller, told the Financial Times that he wanted US agencies to coordinate and establish a regulatory scope for cryptocurrencies and play a more active role in regulating the market, so that which he said there was an appetite.
Sweden’s central bank governor Stefan Ingves told Bloomberg on Monday that stricter regulation is likely on the horizon for bitcoin and other digital assets, especially when the market is so large that things like consumer interest and money laundering come into play.
Specific oversight will likely come at different times in different areas, Ingves said.
Asa Lindhagen, Sweden’s financial markets minister, told Bloomberg the country is already cracking down on exchange platforms and working with other regulators around the world to tackle money laundering.
Lindhagen said international efforts are a work in progress, while highlighting the inherent cross-border dimensions of financial crime.
A number of banks in the UK, including Starling, Monzo and Barclaysha, have reportedly suspended payments to cryptocurrency exchanges in recent weeks in order to deal with high levels of alleged financial crime with such a payment, according to The Telegraph.
Key context
The extreme volatility of the cryptocurrency markets, the high risks of financial crime and the growing popularity have prompted financial regulators around the world to think about how best to implement the necessary collateral in the digital ecosystem without suffocating the ‘innovation. China, which like Sweden is developing its own digital currency, cracked down on financial institutions trading digital assets in May, contributing to a rapid market contraction of nearly 30%. The Biden administration is actively investigating gaps in crypto oversight, and SEC Chairman Gary Gensler recently told a House committee that there was a potential need for dedicated legislation governing crypto exchanges. . Money laundering and illicit activities are at the center of the treasury departments’ crypto efforts, he said.
Crucial quote
Hsu, in testimony to Congress in May, said he felt already seen about today’s enthusiasm for financial innovation and the years leading up to the financial crisis. The new tools being developed bring great promise but also risks, he said.
Tangent
President Bidens’ law enforcement plan, which will help fund his U.S. plan for families, explains the crypto boom. It extends financial movement reporting metrics to crypto platforms to detect unreported income.
Further reading
Bitcoin unlikely to escape regulation, says Riksbank governor (Bloomberg)
U.S. regulators report bigger role in cryptocurrency market (Financial Times)
Banks Block Payments to Crypto Exchanges (Telegraph)
Biden officials reportedly discussed loopholes in cryptocurrency rules in response to wild price swings (Forbes)
[ad_2]
picture credit