Lagarde Calls For Crypto Crackdown, Says They’re “Based On Nothing”

(by Tom Ozimek | The Epoch Times via Zero Hedge) – European Central Bank President Christine Lagarde has taken aim at cryptocurrencies, arguing in an interview on Dutch television that they’re essentially “worth nothing” as they lack underlying assets “as an anchor to safety” while calling for them to be regulated.

“I have said all along the crypto assets are highly speculative, very risky assets,”Lagarde told the program.

“My very humble assessment is that it is worth nothing. It is based on nothing, there is no underlying assets to act as an anchor of safety.”

She added that she’s worried about people speculating on cryptocurrencies with their life savings as they may not be aware of the risks.

Lagarde said she’s concerned about those “who have no understanding of the risks, who will lose it all and who will be terribly disappointed, which is why I believe that that should be regulated,” as per Bloomberg.

In January, Lagarde called for global regulation of Bitcoin, telling Reuters in an interview at the time that the digital currency had been used for money laundering and arguing for rules that would close related loopholes.

Bitcoin “is a highly speculative asset, which has conducted some funny business and some interesting and totally reprehensible money laundering activity,” Lagarde told the outlet in an interview at the Reuters Next conference.

While Lagarde did not elaborate on money laundering specifics related to cryptocurrencies, she argued for regulation that would be agreed upon and applied at a global level “because if there is an escape, that escape will be used,” referring to regulatory loopholes.

Her remarks come amid recent turmoil in crypto markets, which have shed over $1 trillion in value over the past six months. Read Full Article >