IMF Chief Warns Bitcoin A Vehicle For "Money Laundering And Financing Of Terrorism"

The Chief of the IMF has issued a pretty bold warning to international governments; regulate Bitcoin now, or it will become a powerful vehicle for terrorism and money laundering. She also said that governments could use Blockchain technology in order to help combat Bitcoin and other digital currencies.

Lagarde did give some praise with her criticism. She also said Bitcoin and Blockchain offered low-cost transactions, and can be used for speeding up information sharing as well. However, she encouraged governments everywhere to use Block-chain technology to help regulate Bitcoin. She claimed we should "welcome their potential, but also recognize their risks".

Of course, past attempts to regulate crypto-currencies have not gone so smoothly. New York famously created a "BitLicense" in order to trade or use Bitcoin in the state. A wave of high-profile companies announced they were ceasing all operations in New York following the announcement. As countries like China have attempted to regulate currencies and ICO's, it has consistently pushed the price of Bitcoin down and driven start-ups to other jurisdictions with less strict regulations.

What do you think? Does Bitcoin come with some big risks? Should governments be acting swiftly to regulate it?

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