FRANKFURT (Reuters) – The president of the European Central Bank, Christine Lagarde, called for global regulation of Bitcoin on Wednesday, saying that the digital currency had in some cases been used for money laundering activities and that any loopholes should be closed.
Bitcoin has emerged from its niche in recent years and is now being bought by common people, investment funds and even large corporations. Some have even taken out loans to buy more of the cryptocurrency, the value of which has increased nearly tenfold since March.
But its largely anonymous nature raises concerns that it could be used for money laundering and other illegal activities.
“(Bitcoin) is a highly speculative asset that has done funny business and spawned some interesting and totally objectionable money laundering activity,” Lagarde said in an interview at the Reuters Next conference.
Lagarde did not provide specific examples of money laundering cases, but said she understood that criminal investigations had been conducted into illegal activities. She stopped working.
The cryptocurrency sector is still largely lightly controlled or unregulated, although global anti-money laundering (AML) standards have emerged.
She joined a number of regulators from around the world and called for the implementation of global rules for cryptocurrencies.
“There must be regulations. This has to be applied and agreed … on a global level, because if there is an escape, that escape will be used, ”said Lagarde.
For more coverage of the Reuters Next conference, click here or www.reuters.com/business/reuters-next
Visit here to see Reuters Next live
Reporting by Alessandra Galloni, Francesco Canepa and Balazs Koranyi; Editing by Catherine Evans