Cryptocurrencies bring a huge privilege but also a huge responsibility. G20 might finally call for a regulation for cryptocurrencies although regulation is already in place in a number of countries. A report on the same is due this year.
Bank of England’s governor, Mark Carney, echoed his earlier statement that cryptocurrencies are not a risk to the global financial state at the present times. This is because their value is small and they are not largely connected to the financial systems.
He first said this last month, in a letter to the G20 Summit in Argentina. He said in the letter that the value of cryptocurrencies is responsible for only around 1 percent of the global monetary value. Additionally, the National Risk Assessment of Money Laundering and Terrorist Financing 2017 found the risk of cryptocurrency use for money laundering as “relatively low.”
His statement, however, does not mean there is no crime in cryptocurrencies. Probably it could be “huge crime” when you weigh the total value of crypto-related crimes versus total value of cryptocurrencies in the market. By the point, anyone would be very right to say “crime is huge” in cryptocurrencies. Not when you compare the value of crypto-related crimes with global financial value.
Carney says cryptocurrency exchanges that are not under regulations have “plenty of serious abuse” or at a minimum “very porous” to cyber attack and theft. He says they do not meet standards and shouldn’t be tolerated.
The statement shows two things: one it shows, as unjustifiable, the recent aggression amongst governments for or against cryptocurrencies. Now may also be the time for plan and action for or against digital currencies. But there is a need for a well thought out plan and action for the future.
Second, it shows regulation will continue. And while there has been an unjustifiable push for it even most in the crypto business see it as an advantage. Since it could curb crime and illegal activity to their advantage. And hey, the debate is again “timely” the current Bitcoin prices!
Carney says as part of the financial system, cryptocurrencies give us enormous privileges but also great responsibilities.
The G20 came up with a plan to assess the need for cryptocurrencies regulations and a report on the same is due this year. Expectations are that the report will call for a regulation. Whether it will be friendly or may not be the question for now. Also maybe not necessarily because the value of crypto-related crime is relatively low as Carney says. But essentially because blockchain and cryptocurrencies can be part of a good economy, responsibly.
Regulation is definitely not the most important topic for cryptocurrencies right now. What is your say? Let us know on Twitter and Telegram.
Image source:- Carney