Allianz Global Investors (GI) CEO Andreas Utermann encouraged regulators to outlaw crypto.
At a conference held in London, directed toward Andrew Bailey, the head of Britain’s Financial Conduct Authority. Utterman said:
“You should outlaw it. I am personally surprised that regulators haven’t stepped in harder.”
There are many anti-crypto public figures in the world today. This isn’t the first time one of them is suggesting that cryptocurrencies should be banned. During a global forum hosted by G20 governments a while ago, the 20 largest economies in the world agreed that cryptocurrencies will be regulated but not banned.
They said that the goal is to ensure that coins aren’t being used to fund criminal activities. Part of what they said was as follows:
“Cryptocurrencies will be regulated for anti-money laundering and to counter funding terrorism in accordance with the FATF standards. We will also give consideration to other responses needed.”
Accompanying Utterman on the panel was Andrew Bailey, head of the United Kingdom’s Financial Conduct Authority (FCA). Bailey’s public utterances on Bitcoin and cryptocurrency generally have not been positive in the past. However, it seems even he was taken aback by Utermann’s comments, stating:
“That’s quite strong actually!”.
Notwithstanding that, Bailey went on to say that cryptocurrencies have “no intrinsic value”. In an interview with the UK’s public broadcaster, the BBC, last December, Bailey stated that Bitcoin was not a currency as its not regulated. At the time, he said:
“If you want to invest in Bitcoin be prepared to lose your money – that would be my serious warning.”
Whilst Bailey was right in that Bitcoin was in a speculative bubble, it’s understandable given the nascent nature of the technology and its accompanying market, the size of the market, together with the difficulty found in trying to establish a price for it.
There are many industry players that are trying to prepare themselves for potentially stricter policies. Fred Wilson, for example, is the co-founder for Union Square Ventures, and he used his blog recently to show the connections and similarities between the Dotcom Boom (and subsequent bust) and the cryptocurrency performance now. He warned that Bitcoin can still go down from here, even with his faith in Bitcoin himself.
Wilson believes that much of the comments from Utermann are due to the regulatory issues. So far, these regulators haven’t managed to keep cryptocurrency down for too long, but Wilson sees this as an eventual reality. Based on the recent comments of the U.S. Securities and Exchange Commission (SEC), government intervention could put cryptocurrency on a shaky ground that it may not be able to hold onto.
Blockchain Technologies are Symbol Of Innovation in the Rest of the World
Right from time, cryptocurrencies and the underlying blockchain technology have served as a symbol of innovation for major economies. China, one of the fastest growing economies in the world is working on blockchain development initiatives even after it placed a strict ban on cryptocurrencies.
South Korea is one of the leaders in the cryptocurrency industry. Recently, it established that blockchain technology is one of the pillars of the 4th industrial revolution. The country claims that blockchain technology has helped it groom young talent.
Large economies aren’t the only ones benefiting from blockchain technology. Smaller ones like Singapore, Malta and Switzerland are also incentivizing major businesses to invest in emerging technologies like cryptocurrencies.