Just recently, Bank of International Settlements’ general manager, Agustin Carstens has talked about the regulatory situation around cryptocurrencies. He stated that although the cryptocurrency industry is currently being regulated by many policies, yet more cryptocurrency policies are to be introduced into the crypto-sector.
He stated that cryptocurrencies have now become a tool that is utilized by the users for financial laws’ circumvention.
Agustin Carstens shared his views around cryptocurrencies and their regulator infrastructure during an interview with CNBC on Wednesday, March 24, 2021. According to Carstens, the sectors that need a lot of attention and improvements are terrorism financing and money laundering regulations.
The regulators need to focus more on these particular regulations and work together with major cryptocurrency exchanges and other firms in order to find a solution to this problem.
As per Carstens, the utilization of cryptocurrencies to carry out terrorist funding and money-laundering have increased significantly. Over the course of time, many cases have emerged internationally where cryptocurrencies were used as means of laundering money and funding terrorist syndicates.
However, the very nature of cryptocurrencies is decentralized, which makes it extremely difficult to track down such criminals and terrorist groups.
This is the reason why Carstens has urged the regulators and cryptocurrency firms to work together and introduce more regulations to help tackle such issues with full diligence.
On the other hand, the facts and figures around the crime rate involving cryptocurrencies have been very minute in the year 2020. The analysts have even confirmed that the crime rate in the cryptocurrency industry has even dropped from what it used to be in the year 2019.
In the year 2019, the crime rate involving cryptocurrencies was around 2.3 percent which has dropped down to less than 1 percent in the year 2020.
No matter what Carstens had to say about the current regulatory infrastructure around cryptocurrencies, the industry has been making robust changes and amendments to the crypto-laws.
The cryptocurrency firms are now working closely with the regulators in order to strengthen the regulatory frameworks. They are even coming up with ways to tackle criminal syndicates and take down entire operations involved in money-laundering and drugs.
The cryptocurrency sector has also contributed a lot towards making the crypto-industry a safe and secure platform. Over time, the industry has strived to make Bitcoin (BTC) a digital asset that is traceable.
It was exactly the case that helped the law enforcement authorities from the United States to take down a ring that was involved in child pornography. The law enforcement was reportedly able to do this back in October of 2019.
The same is the case with criminals and narcotics vendors that are dealing in cryptocurrencies on the darknet. The law enforcement authorities are constantly involved in taking down such groups.