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Following the steps of other central banks, Riksbank announced that it will start regulating crypto transactions in Sweden soon. Obviously, the growing popularity of cryptocurrencies are attracting the attention of policymakers.
Ireland and Japan already joined the move against cryptocurrencies, but so far it did little harm to the market. Derville Rowland, one of the senior officials in the Central Bank of Ireland, said the craze in the market is very concerning because cryptocurrencies are speculative, not to mention unregulated. He said investors need to be aware that they could suffer huge losses in the crypto market.
The central bank of Sweden agrees on these statements and pointed out risks such as money laundering and fraudulent schemes. Because of this, the government is already tightening standards for crypto transactions, but not in terms of a ban, but on the development of control at the international level.
Many governments have long been trying to suppress the crypto market, but their efforts are obviously unsuccessful. As such, China stepped up its measures, placing a ban on crypto transactions in the country. They reasoned that risks are very high, enumerating concerns on scams, money laundering and huge losses.
As for the United States, the Federal Reserve said it needs more time to decide the right approach to regulation.
The European Commission basically said the same thing, affirming that it is figuring out what is the best way to create a regulatory framework for cryptocurrencies.
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