Exclusive | Global watchdogs unlikely to ban digital currencies – but expect a raft of new regulations on them, says global expert
Japan already issues licensing on bitcoin exchanges while Europe is also planning for more regulation, says Thomson Reuters head
Global regulators are unlikely to ban digital currencies altogether – but they will bring in tighter scrutiny on the buying and selling of bitcoin and its peers to ensure they comply with anti-money laundering and client identification processes, according to one of the world’s leading experts on currency regulation.
Phil Cotter, managing director of risk and supply chain at Thomson Reuters, said in an exclusive interview in Hong Kong that it was highly unlikely digital currencies would remain off the radar of the regulators for much longer.
“They will not be banned, but they will need to follow more rules and regulations,” he said.
He said digital currencies and other formats of digital payments are sure to up their game when it comes to innovation, bringing in greater consumer choice on how to make payments.
But without the necessary regulatory channels to counter those new risks, he added, some people may use the digital currencies to conduct financial crime or other money laundering activities.