While cryptocurrency transactions in the European Union above 10,000 euros ($12,310) should be subject to anti-money laundering rules, applying more onerous financial standards could stunt the emerging market for digital cash, the founders of Bitpanda GmbH said.
“Regulation provides us with more legitimacy,” Bitpanda co-Chief Executive Officer Eric Demuth, 28, said in an interview. “We’ve wanted to be regulated, but so far have been told that we cannot be.”
Financial markets and regulators globally are struggling to classify and govern digital tokens created by entrepreneurs that challenge traditional, central bank-backed currencies. That’s sparked some of their creators to seek out rules to put the industry on firmer ground and lend it credibility.
The prices for a single Bitcoin and an ounce of gold should move closer together as the U.S. Federal Reserve raises interest rates, according to Bloomberg Intelligence analyst Mike McGlone.
“Just 11 months ago, gold and Bitcoin were the same price; now they’re on the road to convergence,” McGlone wrote in a note on Monday. Bitcoin rose 9.1 percent to $9,826 apiece at 11 a.m. in London, according to data compiled by Bloomberg. Gold fell less than 1 percent to $1,317.11 an ounce.
Austria’s finance ministry said last month it’s looking at the trading rules for gold and derivatives as inspiration for drawing up regulations on cryptocurrencies…