The European Central Bank President, Christine Lagarde, came to light on Wednesday for bitcoin’s Global regulation.
According to some of the instances, she says that digital currency is being used for activities related to money laundering. This is why she suggests closing all the loopholes.
Bitcoin has come forward in this niche in recent years and is now bringing people in for the investment of funds. Even large corporations are taking part. Some of them have taken loans to purchase more cryptocurrencies, which is having a highly raised value from last March.
However, it is largely getting anonymous with its nature, which is raising concerns, as it can use the money for laundering various illegal activities. Lagarde said in an interview at the Reuters Next conference, “(Bitcoin) is a highly speculative asset, which has conducted some funny business and some interesting and totally reprehensible money laundering activity.”
Lagarde didn’t provide any specific example of the money laundering case, but she said that she feels there are criminal investigations regarding the illegal activities. However, she didn’t elaborate.
The sector of cryptocurrency is still one of the lightest ones and unregulated though the global standards and anti-money laundering areas (AML) keep emerging.
She joined with a number of regulators across the world while calling for the implementation of the global rules for the market of cryptocurrency.
“There has to be regulation. This has to be applied and agreed upon … at a global level because if there is an escape that escape will be used,” Lagarde said.