February 12, 2018 -- ADVFN Crypto NewsWire -- International
Monetary Fund (IMF) chief Christine
Lagarde told CNNMoney yesterday, Feb.11, that
regulation of cryptocurrencies is “inevitable” and necessary on an
international level.
When asked during an interview with CNNMoney emerging markets
editor John Defterios, about the increasing popularity of crypto
markets possibly being caused by a “starvation for high
returns in the global markets,” Lagarde replied that the trend
showed a “herd mentality” of those looking for high yield
products as well as an element of speculation.
Lagarde added that this trend was also fueled by “dark
activity,” a reference to the potential for cryptocurrencies
to be used for money laundering and other illegal online activities
due to their anonymous nature.
Lagarde herself was convicted of criminal charges in
Dec. 2016 for facilitating an illicit transfer of $400 mln between
Nicolas Sarkozy and Bernard Tapie, although she has denied any
wrongdoing.
As regards regulation of crypto, Lagarde spoke of its
inevitability and the need to focus on
regulating “activities” over “entities”:
"It's clearly a domain where we need international regulation
and proper supervision.”
As early as October 2016, Lagard told the Wall Street
Journal that she sees banks adopting digital currencies in the
next five years, while adding that regulation will be needed to
prevent money laundering and fraudulent activities.
And in October of last year, Lagarde had expressed interest in
the IMF possibly releasing its own cryptocurrency after
her previous comments about the potential benefits for
countries with weak national currencies to launch their own digital
currency.
As the crypto markets have seen a relatively volatile
start to the new year, banks and financial institutions
have become more serious about regulating
cryptocurrencies.
Several large banks worldwide banned credit card
purchases of crypto. On the other hand, the
joint Commodities and Future Trading Commission (CFTC)
and the US Securities Exchange Commission(SEC) hearing on Feb.
6 gave off the impression that future regulation must nurture the
crypto sector instead of smothering it.
Author: Molly Jane Zuckerman