As the price of Bitcoin hit all-time highs over the weekend, regulation must now become a major priority for financial watchdogs, according to the CEO of a leading independent financial advisory.
The call-to-action from Nigel Green, chief executive and founder of deVere Group, came after the price of Bitcoin (BTC) hit a new record high, surging past $61,000 on the deVere Crypto exchange on Sunday for the first time.
Late on Saturday, BTC was quoted on the popular platform Coinbase at $61,759, subsequently dropping below 60,000 on Monday. Early Tuesday, it was trading at $55,946.
“Whether crypto cynics like it or not, there’s no getting away from the fact that Bitcoin is becoming an increasingly important part of the global financial system,” said Green.
“Bitcoins in circulation are now worth $1 trillion, with prices having rallied 890% over the last year. Most major financial institutions, including investment giants and payment companies, are now backing the world’s largest cryptocurrency, and there’s ongoing soaring interest from retail investors.”
The deVere CEO added that the move towards digital currencies is going to increase – and at pace – over the next few years. “This is why financial regulators must now make regulation of the crypto sector a major priority.
“With a growing dominance, Bitcoin and other cryptocurrencies must be held to the same standards as the rest of the financial system with a robust, workable international framework.”
Regulation will bring order
Green explained that this will help reduce any potential disruption to global financial stability, protect investors, tackle illicit activity and deliver an economic boost to countries that adopt and adhere to it.
Previously, the deVere boss, who is a long-time cryptocurrency advocate, had said that one of the best ways to address the regulatory issues is via the exchanges.
“Nearly all foreign exchange transactions go through banks or currency houses and this is what needs to happen with cryptocurrencies. When flows run through regulated exchanges, it will be much easier to tackle potential wrongdoing, such as money laundering, and make sure tax is paid,” he had noted.
“For this to happen, banks will need to open accounts for exchanges, which is why they must be regulated.”
On Monday, the deVere CEO said: “We’re at an important point for Bitcoin, which is now worth more than many countries’ GDP.
“Financial watchdogs need to bring this asset class into the regulatory tent sooner rather than later via the exchanges.”