Bitcoin is facing scrutiny by regulators for its use throughout the financial system, internationally. The backlash follows the rise of the digital value of its currency that generated concerns over the lack of insights by financial authorities.
The Financial Conduct Authority, as well as Christine Lagarde, European Central Bank’s president, spoke about the system’s focus on criminal activities. They collectively called for stringent regulation under the industry of digital currency. They further highlighted the volatile business that takes place under the market and is widely associated with it.
Reasons To Call For Regulations For Bitcoin:
The president of ECB held a conference midweek on 13th January. She said of her opinions that Bitcoin had managed to conduct a couple of “funny businesses.” She further stated that the digital currency firm had also carried out several activities of laundering of money, calling it “reprehensible.” UK’s FCA also provided their insights. They incited a “warning” to anyone who was investing in Bitcoin should be ready to “lose their money.”
Last year, Bitcoin saw its largest leap in price, with its peak reaching 300%. It has amassed over 40% since early January. This, however, has been falling since, with no trigger, dropping more than 17%. Lagarde further stated that Money Laundering’s Financial Action Task Force had started focusing on the crypto-industry.
This week, a digital market was shut down by German Police for selling drugs exchanged with cryptocurrency. A website known as DarkMarket was running in a secret part of the cyber world called the dark web. The website was in use by over 2,400 traders who sold drugs. The drugs sold had a net worth of more than 140 million euros. Europol added that the website, now shut down, was the biggest illegal market lurking on the dark side of the web.