Bitcoin business: Chief of the Basel Banking Committee warns
Düsseldorf – According to the head of the Basel Committee on Banking Supervision, financial institutions should also be better off holding business with Bitcoin. “Given the potential money laundering risk inherent in this market, it would be quite difficult for banks to become active in these markets on a large scale,” said Stefan Ingves, who is also the governor of Sweden, the Handelsblatt.
Banks are required to identify their customers. In addition, the price increases in the Bitcoin are very large. “It shows that crypto currencies are very risky and have nothing in common with a regular payment system, so I would advise banks to keep their hands off,” Ingves said.
From the point of view of the central banker, Bitcoin is not a currency. “There is no oversight over these markets, so trading Bitcoin is like going to the casino.” Add to this the problem of how to avoid money laundering when exchanging these electronic assets in euros, dollars and other currencies. “It’s very likely that governments will keep an eye on these developments,” says Ingves, adding that banking regulators must keep an eye on crypto currencies.
Investors were moderately impressed by the comments. On Sunday afternoon, Bitcoin was traded a bit lower.