A top crypto exchange has warned that governments might soon restrict the use of bitcoin and other cryptocurrencies.

Officials — including Treasury Secretary Janet Yellen and European Central Bank President Christine Lagarde — have raised alarms about bitcoin being used for terrorist financing among other illegal activities.

“I believe there could be a crackdown., Jesse Powell, the current CEO of Kraken, told CNBC during an interview. Cryptocurrencies have increased in value, with bitcoin reaching a record high of more than $61,000. The world’s top digital coin was last trading at near $60,105.

Kraken is the fourth largest crypto exchange in terms of volume. The firm is reportedly discussing going public through a direct listing, like Coinbase.

The firm’s CEO thinks the uncertainty surrounding crypto won’t go away soon. A recent money laundering law proposed by the U.S. would force people who hold their crypto in a private wallet to have identity checks for transactions over $3,000.

 

“I hope that regulators do not take too narrow a view about this., Powell said. “Other nations, China especially, are looking at crypto very seriously with a very long-term view.”

Kraken’s CEO then went on to say the U.S. was “shortsighted” and was “susceptible” to the pressures of big banks that could lose if Bitcoin succeeds.

“It could be too late., he added. “Maybe at this point, trying to ban it would only make it more attractive. It would certainly make it seem that the government sees it as a better currency to their own.“

Author: Scott Dowdy

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