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American And Swedish Authorities Signal Stricter Crypto Oversight As U.K. Banks Restrict Transfers To Digital Currency Exchanges

The extreme volatility of the cryptocurrency markets, high risks of financial crime and fast-growing popularity has prompted financial regulators around the world to consider how best to implement necessary safeguards into the digital ecosystem without stifling innovation. China—which, like Sweden, is developing its own digital currency—cracked down on financial institutions trading in digital assets in May, contributing towards a rapid market contraction of nearly 30%. The Biden Administration is actively looking into “gaps” in crypto oversight and the SEC chair, Gary Gensler, recently told a House committee that there was a potential need for dedicated legislation governing crypto exchanges. Money laundering and illicit activities are a focus for the Treasury department’s crypto efforts, he said.

Financial regulators in Sweden and the U.S. both hinted at impending crackdowns on largely unregulated cryptocurrency markets over Memorial Day weekend, noting the absence of a consistent framework for the new technology, the specter of financial crime and the risks to consumers posed by crypto exchange platforms, which a number of U.K. banks reportedly blocked customers from transferring money to.

On Monday, the governor of Sweden’s central bank, Stefan Ingves, told a reporter that stricter regulation is likely on the horizon for bitcoin and other digital assets, particularly when the market is so large that “things like consumer interest and money laundering come into play.”

Also, a number of banks in the U.K.—including Starling, Monzo and Barclays—have reportedly suspended payments to cryptocurrency exchanges in recent weeks in order to address “high levels of suspected financial crime with such payment,”

Source: Forbes Crypto