Ancient Treasure Sec Summers: Crypto Needs Rules
Former treasury secretary Lawrence summers believes crypto enthusiasts need to be more enthusiastic about government regulation, Bloomberg writes.
He said that due to the large financial sums invested in digital currencies, the industry is unlikely to be able to function without the knowledge of the government.
“When you have large sums of money in secret, you have the risk of money laundering, the risk of supporting criminal activity, the risk of innocent people getting ripped off,” he said.
Summers, speaking on Bloomberg TV, said the situation was on par with the airline and automotive sectors, where increased regulation ended up allowing industries to continue.
Summers’ comments came after China banned crypto transactions, promising to stop mining as well, in what has been called a crucial rhetoric.
This country has long expressed skepticism about crypto because of its links to fraud and money laundering, as well as environmental impacts.
Summers said the crypto industry needs to stop clinging to the idea that this will be “heaven” without any government intervention. He said the industry needs to adopt the regulation because its importance is systemic. He said it was a good idea “not just for the protection of consumers but for the protection of themselves,” he said.
PYMNTS reports that two of the biggest bitcoin exchanges, Huobi and Binance, will not accept new registrations from Chinese users due to government crackdown.
See also: Bitcoin Exchanges bans Chinese users from following ban
While Hong Kong users will still be free to register, mainland Chinese users will not be able to, and existing Huobi accounts from there will be closed by the end of the year in order to comply. to the new regulations.
Meanwhile, Binance is under investigation by the United States, with part of the accusation being allegations of market manipulation and insider trading. PYMNTS writes that the lawsuit is investigating whether Binance took advantage of clients.
Read more: US Binance Investigation Expands To Include Alleged Market Manipulation