The US government is worried that bitcoin development is being utilized for ‘illegal acts’ in the US. The senior-most financial policymaker of Donald Trump has requested for global regulation to restrict cryptocurrencies use for law-breaking as well as other delinquent action. Several reports regarding cryptocurrency future have been presented at the economic leaders’ Davos meeting. For example, Theresa May stated that she regarded the possibility of investigating the utilization of bitcoin and other digital cash very grimly. Steve Mnuchin, the US treasury secretary, remarked that he was also anxious about the same issue. He advised that the globe required working jointly to concentrate on cryptocurrencies to ensure the security of financial markets.
‘My priority where cryptocurrencies is concerned is whether bitcoin, digital currencies or others is what we need to ensure that they are not utilized for illegal acts,’ he informed the World Economic Forum in Switzerland, Davos. Mnuchin stated, ‘We support Fintech and innovation; however, we wish to ensure that each of our financial markets are secure.’ We want to make sure that other regions of the globe and most of the (Group of) 20 states are embarking on this already and present similar regulations.’ Bitcoin and different virtual currencies platforms found in the US should conform with regulations for anti-money laundering with about 100 platforms like these listed with the Financial Crimes Enforcement Network of the U.S. Treasury. According to the regulations, they should submit reports on financial acts that are untrustworthy.
The previous year, Bitcoin increased by 1,700% and more, breaking the record. It created apprehension that the unstable rising asset presents a danger to investors and the global financial mechanism. Regulators have issued a warning also, about the danger that crooks might utilize virtual currencies to keep and send their profits, which they have acquired illegally. The reason is that they can be utilized secretly.
Many states like China and South Korea attempted to limit cryptocurrencies trading. Concerns about more limitations made bitcoin decrease to almost 20% the previous week. Policymakers all over the globe are discussing the way to handle the instability of cryptocurrencies. On Thursday, a top official of Bank of Japan stated that it is not going to be simple to implement worldwide, general regulations on their trading.
International Monetary Fund head, Christine Lagarde stated that governments should consider the perils as well as advantages linked to the growth of cryptocurrencies in determining how the market should be regulated, if at all. ‘The secrecy and absence of transparency and how it hides and defends money laundering and terrorism financing is simply deplorable. It should be considered; however, innovations will arise from these movements,’ Lagarde informed the Davos forum.
BlackRock Inc. (the primary asset manager in the world) chief executive, Larry Fink said at the forum that cryptocurrencies presented a universal danger, which should be handled internationally. He remarked that they could be something he would consider investing in, but the sector of crypto currency was ‘mostly a money laundering index.’