The CEO of Allianz Global Investors, Andreas Utermann, has called for the pronouncement of cryptocurrency as illegal by regulators, according to a report.
During a conference, Utermann made a statement which was aimed at the leader of Britain’s Financial Conduct Authority, Andrew Bailey, and it reads:
“You should outlaw it [crypto]. I am personally surprised that regulators haven’t stepped in harder.”
Regulators to Make Crypto Use Safe
During the recent G20 summit, government authorities from the 20 largest world economies agreed to regulate the crypto industry mainly to ensure that the use of digital assets does not include money laundering and the funding of criminal activities.
Below is a statement from The G20:
“We will regulate crypto-assets for anti-money laundering and countering the financing of terrorism in line with FATF [Financial Action Task Force] standards, and we will consider other responses as needed.”
Now that the G20 has decided to make cryptocurrency a regulated asset, it is expected that many governments of the world will desist from putting restrictions on cryptocurrencies as such move empowers institutions and individuals to use digital currencies as they deem fit, while the government remains oblivious to their activities.
Cryptocurrency; A Source Of Wealth Even For Governments
The establishment of a well-run crypto ecosystem business by the government will be of benefit to it in the long run because it will enable the government to receive taxes from crypto investors and also to keep a check on every crypto related activity that comes from regulated crypto platforms which are strictly regulated and provided with Anti-Money Laundering (AML) and Know Your Customer (KYC) systems, to prevent its use for criminal operations.
In addition, if the government bans crypto transactions and trading, possibilities are that cryptocurrency activities will be taken to P2P platforms and markets which are underground, thereby making it more difficult to govern and monitor by the authorities.
Many big economies today have become more innovative in the blockchain and cryptocurrency industry. A country like China has continued to make giant strides in blockchain development even though they placed a ban on crypto trading in their territory.
South Korea identifies as the third biggest crypto exchange market globally, and the blockchain technology serves as one of the supports of the Fourth Industrial Revolution, hence the reason why the country encourages more blockchain skills among the younger generation.
Smaller economies like Singapore, Switzerland, and Malta have recorded progress by supporting a multi-billion dollar market like cryptocurrency.
The use of digital currencies is not easy to restrict, but any government which goes ahead to place a ban on it loses out on its benefits. The G20 understands this, hence the reason why they chose to back the market regulation.
The Forces of Cryptocurrency, Fidelity And Nasdaq
At a time whereby many financial institutions are demanding that cryptocurrency should be outlawed, many big corporations like NYSE, Nasdaq, ICE, Goldman Sachs and Fidelity are reinforcing the crypto market.
The four corporations aim to use futures markets, exchanges and trusted custodial solutions to cater to the needs of investors in the conventional financial market.
With the increased sophistication of transaction monitoring, KYC systems and surveillance, it will be hard to assert that cryptocurrencies are more vulnerable to money laundering and criminal activities than fiat currency.
Two banks named Deutsche and Danske Banks were involved in money laundering scandals this year alone, and the amount of money involved is higher than the whole cryptocurrency market cap.