Alliance GI CEO Urges Regulators To Ban Cryptocurrencies

Cryptocurrencies have no role in modern societies and regulators should ban them. Those are the sentiments for Allianz Global Investors head, Andreas Utermann.  According to the executive, crypto asset have wiped people’s savings thus the need to do away with them.

Cryptocurrencies Ban

The sentiments come on the broader cryptocurrency sector turning bearish. A good number of cryptocurrencies are down by double digits. Bitcoin, for starters, is down by more than 80% having plunged from record highs of $20,000.

The cryptocurrency sector enjoyed a spectacular boom in 2017 leading to significant returns for people who invested small amounts on the likes of Bitcoin and Ethereum. A change of sentiments in 2018 has led to one of the worst routs leading to huge losses.

Concerned by the way, people have lost money and some their life savings, Utermann believes it is time to outlaw cryptocurrencies.

“You should outlaw [crypto assets] because many have lost savings due to the significant slump in the crypto markets. “I am personally surprised that regulators haven’t stepped in harder,” Utermann in a statement.

The sentiments are in stark contrast to those echoed by the International Monetary Fund president. According to Madam Christine Lagarde, governments should consider offering their own cryptocurrencies. Lagarde made the remarks on the belief they will go a long way in preventing cryptocurrencies from becoming havens for fraudsters and money launderers.

Cryptocurrencies-ICO Regulation

Utermann made the remarks while sited next to the Head of Britain’s Financial Conduct Authority Andrew Baily.  According to Mr. Baily, banning cryptocurrencies is not a consideration. However, the agency continues to maintain a watchful eye on the burgeoning sector.

The FCA has already formed a task force tasked with the responsibility of coming up with a regulatory framework for the cryptocurrency sector. The team is currently assessing the potential impact and benefits of cryptocurrencies and blockchain technology. The agency has also indicated that it might be forced to ban some cryptocurrency-based derivatives, which pose significant risks to people

Regulators around the world have had to swing into action, amidst growing concerns about illegal activities in the sector. The use of cryptocurrencies for money laundering or financing terrorist activities is some of the biggest headwinds.  Initial Coin Offerings have also come under scrutiny having emerged that as many as 80% of projects that raised money through the process last year have already gone down.