Sweden’s central bank: Bitcoin’s rising popularity will tighten regulation

Bitcoin and other cryptocurrencies are unlikely to escape close regulatory scrutiny due to their growing popularity. This was stated by Riksbank Governor Stefan Ingves, Bloomberg reports.

“When something becomes big enough, things like consumer interests and money laundering come into play. There are strong grounds to believe that [regulation] will occur,” said the head of the central bank.

In his view, regulatory rules will take shape at different times and in different spheres.

Sweden’s Minister for Financial Markets Åsa Lindhagen noted that authorities are already developing stricter requirements for cryptocurrency companies. However, in addressing the ‘very important problem’ of money laundering, she pointed to the need for cooperation with regulators in other countries.

Earlier the Riksbank said it had completed the first phase of pilot CBDC trials. The regulator also selected a participant for the digital krona experiment — one of Sweden’s largest financial institutions, Handelsbanken.

In May, Christine Lagarde, head of the European Central Bank (ECB), warned of the money-laundering risks posed by cryptocurrencies.

Later the regulator noted an increase in interest in Bitcoin from retail and ‘some’ institutional investors. The ECB described the threats to financial institutions from digital assets as ‘limited’.