Bitcoin Will Face Tougher Regulation as Popularity Grows, Says Sweden’s Central Banker

by Gordon James

Sweden’s central bank, the Riksbank, has released a statement saying that Bitcoin will face tougher regulation with the growth of its popularity. The bank’s chief executive, Stefan Ingves, said that the country’s financial regulator will take a closer look at new regulations. The statement came as Bitcoin hit a new milestone of $10,000.

Within a matter of hours, the price of bitcoin fell below $10,000 a coin. It’s not the first time bitcoin has seen a sudden drop. But this time, the digital currency’s sudden weakness indicates it is facing tougher regulation as it grows more popular.

The Swedish Riksbank has suggested that bitcoin will face tougher regulation as the popularity of the cryptocurrency grows. The statement comes as Sweden’s central bank continues to monitor the increase in popularity of the virtual currency, with future plans to develop a cryptocurrency of their own.. Read more about will cryptocurrency crash and let us know what you think.

The governor of Sweden’s central bank says bitcoin will be subject to stricter regulation, given its immense and growing popularity. When something becomes important enough, issues such as consumer advocacy and money laundering come into play, says Stefan Ingves, director of the Riksbank.

Tougher regulation of bitcoins expected

Stefan Ingves, governor of Sweden’s central bank, the Riksbank, said Monday that bitcoin and other cryptocurrencies are unlikely to escape regulatory scrutiny because of their widespread popularity, Bloomberg reports. Although regulators are concerned about bitcoin and other cryptocurrencies, they continue to grow in popularity. They have attracted major financial institutions, including major investment banks Goldman Sachs and Morgan Stanley, who are now offering crypto investments to their clients. A growing number of businesses now accept bitcoin payments, offer crypto-currency related services and include bitcoin in their balance sheets. Goldman Sachs recently said bitcoin has become a new asset class as it sees huge institutional demand for cryptocurrencies. The value of the bitcoin market recently crossed the $1 trillion mark. Governor Ingwes makes his statement: When something becomes important enough, things like consumer interests and money laundering come into play. So there is every reason to believe that [regulation] will happen. Swedish Financial Market Minister Asa Lindhagen said the government is already working on stricter standards for cryptocurrency exchanges, the publication reported. However, she noted that this has not yet been finalized at the international level, stressing that cross-border cooperation with other governments is needed to address the risk of money laundering with cryptocurrencies. Per Jansson, deputy governor of the Riksbank, expressed concern on Tuesday that the price of bitcoin and other cryptocurrencies continues to fluctuate excessively and that they have nothing concrete and substantial to support their real value. What do you think of the Swedish central banker’s comments? Let us know your comments in the section below.

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bitcoin regulation, crypto currency oversight, crypto currency regulation, rixbank, rixbank bitcoin, rixbank crypto, Sweden, Swedish bitcoin regulation, Swedish crypto currency regulation Photo credit: Shutterstock, Pixabay, Wiki Commons Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any goods, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.Sweden’s central bank chief says the popularity of Bitcoin is a sign of the currency’s growing risks. Magnus Svensson said the virtual coins had “great potential” but warned against their use as a payment method due to their lack of central regulation. Svensson’s comments came after similar remarks from the Swiss central bank chief who called bitcoin a “speculative bubble.”. Read more about why is cryptocurrency valuable and let us know what you think.

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