According to Stefan Ingves, the governor of Sweden’s central bank, Bitcoin has grown to the point where it can no longer be excluded from regulatory frameworks.
Bitcoin, the world’s most valuable cryptocurrency by market capitalization, has grown too large an asset to be exempt from regulation, according to Stefan Ingves, the governor of Sweden’s central bank. At the same time, the country’s finance minister revealed that the government is considering stronger regulations for cryptocurrency exchanges. Regulators worldwide are working hard to regulate the burgeoning cryptocurrency sector, which has received a lot of widespread attention this year.
More government regulation of cryptocurrencies is on the way.
Stefan Ingves, the Governor of Riksbank, Sweden’s central bank, said in a recent speech published by Bloomberg that cryptocurrency’s expanding popularity raises the stakes for regulators, central bankers, and lawmakers worldwide. “When something becomes large enough, factors such as consumer interests and money laundering enter the picture. So there’s reason to expect [regulation] will take place,” the governor of the Riksbank remarked. Only a few governments, however, have proposed specific legislation for the bitcoin sector. The United States, for example, has been struggling for years, and FinCEN’s most recent plans were put on hold once the Biden administration took office.
Central banks are still thrashing each other.
Following the tremendous volatility bitcoin experienced in May, global central bankers have openly criticized the top cryptocurrency. Lars Rohde, the governor of Denmark’s Nationalbank, had previously labeled the industry as a “speculative fad” with “no stability and no guarantee from any side” concerning its value. His remarks come after Andrew Bailey, the Bank of England governor, cautioned present and potential bitcoin investors that they should expect to lose all of their money if they invest in the cryptocurrency. Due to its significant volatility, the Chairman of the Federal Reserve, Jerome Powell, has joined other central banks in dismissing bitcoin’s suitability as a global store of value and medium of exchange.