British Prime Minister Theresa May warned that governments must take digital currencies seriously given their appeal to criminal enterprises. During a televised interview with Bloomberg at the World E
British Prime Minister Theresa May warned that governments must take digital currencies seriously given their appeal to criminal enterprises. During a televised interview with Bloomberg at the World Economic Forum in Davos, May addressed cryptocurrency regulation alongside her broader comments on technology governance, internet social responsibility, child exploitation, counterterrorism, and opportunities for U.K. tech firms post-Brexit. She noted bitcoin's "increasing development" as something requiring attention.
Chancellor of the Exchequer Philip Hammond shared May's concerns, describing cryptocurrency as an "interesting new development" that demanded caution. "Possibly we do need to look at the way we regulate this environment before the amount of outstanding bitcoin becomes large enough to be systemically important in the global economy," Hammond said. "It's not there yet, but it could get there soon."
Both officials emphasized that regulation should preserve blockchain's potential rather than undermine it.
The context for their comments reflects bitcoin's spectacular 2017, when the cryptocurrency gained over 1,700 percent and approached $20,000 per coin. The market has since contracted sharply, weighed down by regulatory uncertainty and talk of a speculative bubble. Bitcoin trades at $11,258 on CoinMarketCap.
Kevin Murcko, chief executive of exchange CoinMetro, views government regulation differently. He sees it as a legitimizing force. "As different nations move to regulate cryptocurrencies in different ways, the short-term impact on the markets will be outweighed by the longer-term stability afforded by consumer protections and the elimination of fraudulent entities and practices," Murcko told MiningPool.
Regulation presents a paradox for the crypto sector, which was built on the premise of removing central control. Murcko argues regulators and the cryptocurrency community must work together. "If we simply let regulators regulate then we may be left with regulations that stifle progress and do little to safeguard crypto-investors," he said. Proper frameworks, in his view, could accelerate mainstream adoption and stabilize emerging markets.
