Bank of England Head Doesn't Consider Cryptos as a Thread

The statement of Bank of England head had a big impact onto the cryptocurrency market
19 March 2018   272

Head of Bank of England at G20 Summit

The Financial Stability Board (FSB), which supervises banks and financial networks, refused to create new rules for regulating bitcoin in favor of revising existing ones. According to Reuters, the statement was made in the framework of preparatory meetings before the G20 summit.

According to the chairman of the FSB, the head of the Bank of England, Mark Carney, the authorities need to focus their efforts on filling the gaps in the data exchange that can help to regulate the rapidly developing but still "insignificant" cryptual currency against the global financial market system.

The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time. As its work to fix the fault lines that caused the financial crisis draws to a close, the FSB is increasingly pivoting away from design of new policy initiatives towards dynamic implementation and rigorous evaluation of the effects of the agreed G20 reforms. 
 

Mark Carney

Head, Bank of England

The chairman of the FSB also expressed his belief that his department, even if the leadership was changed, would not develop new standards for regulating crypto-currencies, but would improve existing ones.

As its work to fix the fault lines that caused the financial crisis draws to a close, the FSB is increasingly pivoting away from design of new policy initiatives towards dynamic implementation and rigorous evaluation of the effects of the agreed G20 reforms.
 

Mark Carney

Head, Bank of England

Market Reaction

Meanwhile, the market reacted positively to this statement

Top Ten Cryptocurrencies
Top Ten Cryptocurrencies

In a short time the BTC jumped by $ 1000. Altcoins followed, most of which came out into the green zone.

Total Market Cap
Total Market Cap

Overall marketcap had also jumped from $274B to $318B in a short time.

Myth of Total Illegal Bitcoin Use rejected by Scientist

Quebec Chief Scientist (Canada), Rémi Quirion, has issued a rejection for the “myth” that illegal transactions are among those for which BTC is basically used
25 April 2018   60

Chief Scientist is closely connected with the Fonds de recherche du Québec (FRQ) – a publicly funded establishment founded for “providing support for the production and dissemination of knowledge.” Mr. Quirion states that Bitcoin is often accused of being a good tool for crime or money laundering, adding that “Even Christine Lagarde, president of the International Monetary Fund (IMF) recently called for more regulation of cryptocurrencies to counter illegal activities.”

Quebec’s Chief Scientist insists on bitcoin offers its customers “pseudonymity,” rather than total anonymity, which detracts from its potential illicit usage. Mr. Quirion cited Jonathan Hamel, who has denied that the public nature of bitcoin’s blockchain diverts from its anonymity.

Every transaction is transparent and public. They are indeed recorded in a kind of ledger whose copies are distributed among thousands of computers.
Jonathan Hamel, Cryptocurrency Analyst, Associate Researcher, Montreal Economic Institute

Erwan Joncheres, Cryptocurrency analyst, is also mentioned in the document.  He has also denied statements that bitcoin and money laundering go alongside.

I think that tax evasion and money laundering are anecdotal on cryptocurrency networks. Since bitcoin is transparent, it will be very easy to identify all the people trading on an online exchange or portfolio platform.
Erwan Joncheres, Cryptocurrency Analyst

The document underlines the research conducted by the Center for Sanctions and Illicit Finance of the Defense of Democracies Foundation that, after analyzing bitcoin transactions made between 2013 and 2016, revealed that only 0.61% of trading transactions in the period were associated with illegal activities. The Chief Scientist refers center’s findings that illegitimate transactions within the bitcoin economy are extremely centralized, further undermining the offer that illicit activities pervade the bitcoin economy. Said research indicated that less than 10% of anonymous free markets were responsible for 95% of illegal transactions towards bitcoin between 2013 and 2016.