With Increased Popularity Bitcoin Will Be Subject to Strict Regulation

Stefan Ingves, Riksbank’s Governor thinks that if Bitcoin’s popularity continues to grow then it will be subjected to strict regulations by the Governments. He is of the view that more popularity for Bitcoin will give rise to debates of money laundering and consumer interests. Later on, a Swedish Minister also apprised that the Government is in the process of preparing draft crypto regulation with mutual cooperation of other countries.

Riksbank is the central bank of Sweden whose present Governor is Stefan Ingves.

On 31st May 2021, the Governor of Riksbank was seen suggesting his viewpoint regarding Bitcoin and crypto. He said that there is no chance that either Bitcoin or any other digital asset will avoid any oversight by the global regulators. He claimed that it is the continuously growing popularity of Bitcoin that will attract even harsher and strict oversight.

Bitcoin’s present situation isn’t going well as expected and in fact, it has been under harsh criticism over power consumption. But still, the lead crypto coin of the world is being able to earn good repute amongst global investors. Even in the past, Bitcoin continued to integrate more and more individual as well as institutional investors. These investors then poured into Bitcoin multi-billion dollar investment at the time when physical trade markets were almost closed due to Covid-19.

Bitcoin was introduced in the world in 2009 and from 2009 till 2019 it has earned a huge reputation. However, the reputation it has earned since the pandemic has come, is an extraordinary outclass from 2009 to 2019. In just two years’ time, Bitcoin was regarded as a distinct “asset class”, a “hedge against inflation” and a “remedy against the financial crisis”. These are the new names that have been acclaimed by Bitcoin since the end-2019 date.

However, in the opinion of Ingves, if Bitcoin’s reputation will continue to grow then it will create problems for Bitcoin. He argued that more popularity will attract more scrutiny and regulatory supervision. Even the issues like money laundering and consumer interest will creep in, requiring discussion and debates. Ingves believes that keeping in view these elements it is impossible that neither Bitcoin nor any crypto-asset will avoid regulatory supervision. He thinks that there may be some delays, but overall global regulators have penned down crypto regulations.

Meanwhile, Ingves’s argument was further backed by the statement of Financial Markets’ Minister, Asa Lindhagen. The Minister stated during a public session that Swedish regulators are already working on the crypto regulation. The regulations would be strict in nature for ensuring best business practices within the Swedish crypto industry, said the Minister. She also gave a hint that crypto regulation will be prepared with the mutual consent of worldwide governments. She stated that the issues of money laundering and consumer protection are international issues and therefore require the world’s attention.