[2018-02-12] IMF Christine Lagarde: Cryptocurrency Regulation is `Inevitable`

[moriskarlov]

The cryptocurrency market has largely operated free from regulation since Bitcoin first came about in 2009. With crypto on everyone’s minds these days, however, the IMF says Bitcoin regulation is an unavoidable eventuality.

“IT’S INEVITABLE”

According to International Monetary Fund (IMF) chief Christine Lagarde, it’s not a matter of “if” cryptocurrencies will be regulated by world governments, but rather “when.” Explained Lagarde to CNNMoney:

"It’s inevitable. It’s clearly a domain where we need international regulation and proper supervision."

Lagarde also joined in on the rhetoric that cryptocurrencies are largely utilized by criminals, claiming at the World Government Summit in Dubai on Sunday that “there is probably quite a bit of dark activity [in cryptocurrencies].” Thus, it is her belief that Bitcoin regulation should be focused less on individual or collective entities and more on fraudulent or criminal activities.

ECHO CHAMBER

Lagarde is not alone in thinking government regulation is on the horizon.

Commodity Futures Trading Commission (CFTC) commissioner Brian Quintenz agrees and has called upon the cryptocurrency industry and advocates to form their own self-regulatory organization (SRO) before governments get more involved.

U.S. Treasury Secretary Steven Mnuchin also believes stricter regulatory measures must be taken against those utilizing cryptocurrency for illegal purposes, stating:

"We encourage fintech, we encourage innovation, but we want to make sure that all of our financial markets are safe and aren’t being used for illicit activities."

British Prime Minister Theresa May has also expressed concerns over cryptocurrency’s criminal usage, stating that she is looking “very seriously” at cryptocurrencies “because of the way they are used, particularly by criminals.”

French Finance Minister Bruno le Maire and interim German Finance Minister Peter Altmaier are also calling for cryptocurrency regulation, but for a different reason. Rather than fearing criminal usage of virtual currencies, they’re afraid that Bitcoin and other cryptocurrencies could disrupt traditional financial structures, writing:

"Given the fast increase in the capitalization of tokens and the emergence of new financial instruments … these developments should be closely monitored."

The World Gold Council believes Bitcoin could undermine central banks, and many major banks themselves have already taken measures to discourage or outright prevent cryptocurrency purchases.

Thus far, however, regulation has largely been confined to discussions in echo chambers and law enforcement operations against cybercriminals.

http://bitcoinist.com/imf-cryptocurrency-regulation-inevitable/

[poptok1]

Powerless women will always run to daddy-the state.   
Commissions, gatherings, ministry's, councils, this is all fu*king cancer that eats us alive (some say that self censorship is the worst kind of censure). Western world is drowning in regulations, permits, licenses and more BS similar in nature. This has to stop...
All those useless people do, is inventing ways of making others life miserable. They pretend to be working and we're pretending we need those parasites. Imagine how many taxpayers money where lost in those comities and what a conclusion they achieved!? Just wow, Nobel-worthy "more regulations", who knew...  Up until now we are doing quite OK, some got scammed, some got rich, the rest is trying. I think it is the "zero-growth" policy here, they just have to stop the development of new, intelligent, self funded "PCmasterrace" before they loose it all.

BTW Horribly unreadable website so I think such repost is more than welcome.

[secondgarlic]

Powerless women will always run to daddy-the state.   
Commissions, gatherings, ministry's, councils, this is all fu*king cancer that eats us alive (some say that self censorship is the worst kind of censure). Western world is drowning in regulations, permits, licenses and more BS similar in nature. This has to stop...
All those useless people do, is inventing ways of making others life miserable. They pretend to be working and we're pretending we need those parasites. Imagine how many taxpayers money where lost in those comities and what a conclusion they achieved!? Just wow, Nobel-worthy "more regulations", who knew...  Up until now we are doing quite OK, some got scammed, some got rich, the rest is trying. I think it is the "zero-growth" policy here, they just have to stop the development of new, intelligent, self funded "PCmasterrace" before they loose it all.

BTW Horribly unreadable website so I think such repost is more than welcome.

In all seriousness, you are not going to say that you were thinking that the governments would leave crypto untaxed, do you? Especially after they saw how much potential it has?

"Some got scammed, some got rich, the rest is trying." You should end that sentence with "and none of them paid any taxes". That's why the crypto regulation is inevitable.

[Carlton Banks]

Lagarde also joined in on the rhetoric that cryptocurrencies are largely utilized by criminals, claiming at the World Government Summit in Dubai on Sunday that “there is probably quite a bit of dark activity [in cryptocurrencies].” Thus, it is her belief that Bitcoin regulation should be focused less on individual or collective entities and more on fraudulent or criminal activities.

Right, so nothing's changed. At all.

If the big plan of the IMF (and it's monetary system crooked cohorts) is to create rules for criminal acts using Bitcoin, then this "news" is no less than an admission of their failure to come up with anything at all. Criminals don't care about breaking laws and immoral behaviour ALREADY, announcements like this are about as terrifying as those announcements that banks will be fined for breaking laws.


There's nothing that the so-called authorities can really do, other than accept that Bitcoin is a higher authority than they are.

[Vektrum]

Regulation of the crypto currency by the states is unequivocally inevitable and this is absolutely normal. The Crypto currency has begun to exert such a strong influence on the economies of various states that they can no longer ignore its existence. In addition, it makes a huge profit by its user. They become millionaires and billionaires. Of course, any state at the same time will establish rules for the regulation of the crypto currency and provide for collection of certain taxes.

[poptok1]

In all seriousness, you are not going to say that you were thinking that the governments would leave crypto untaxed, do you? Especially after they saw how much potential it has?

But what's the point? We already have income tax.
Every country that utilizes this idea is covered in crypto-tax department!
No need for more, don't you think? unless you are one of the "taxation/regulation-madness" fans...

"Some got scammed, some got rich, the rest is trying." You should end that sentence with "and none of them paid any taxes". That's why the crypto regulation is inevitable.

Well this is probably true, but its not a reason to add more restrictions, no need for increase of the tax complexity levels, rather tighten the systems that are in place BUT this would require some actual work and thinking... so better lets add to the mix it will become next administration's problem, not ours.

[orions.belt19]

I have noticed that there has been a trend of consecutive ‘regulations’ made by various countries especially when bitcoin has started to become popular and mainstream. It was as if that the countries were pressured by how the other countries were starting to make actions towards cryptocurrencies.

Once cryptocurrencies become more widely used, it is but expected for their to be regulations to come next. Governments will only do something once it has concerned a huge volume of their citizens or when it would affect them directly or to the nation.

[Dany44]

Along with IMF and ESA, Thailand’s central bank has banned the country’s banks from dealing with digital currency

[Ozero]

In order for the crypto currency to continue to develop, its regulation by the state is indeed inevitable. Legal entities will not be able to make settlements in the crypto currency if they are not given the appropriate permission from the tax authorities. Proceeding from this, regulation is the next and necessary stage in the development of the crypto-currency infrastructure.

[Carlton Banks]

In order for the crypto currency to continue to develop, its regulation by the state is indeed inevitable. Legal entities will not be able to make settlements in the crypto currency if they are not given the appropriate permission from the tax authorities.

According to this logic, every Bitcoin exchange or other BTC accepting business in the whole world, except Japan, is operating illegally. There are many 100's of exchanges and many 1000's of businesses accepting BTC worldwide. You don't understand how the law works.