Bitcoin plunges into fears of US repression Business

Governments are taking a closer look at the risks surrounding the sector as the investor base grows.

Federal Reserve Chairman Jerome Powell said last week that Bitcoin “is a lot like gold” in that it is more of a vehicle for speculation than for payments.

In January, European Central Bank President Christine Lagarde took on Bitcoin’s role in facilitating criminal activity, saying cryptocurrency allows for “fun deals.”

Turkey’s central bank banned the use of cryptocurrencies as a payment method from the end of the month, saying the level of anonymity behind digital tokens carries a risk of “unrecoverable” losses.

India is expected to propose a law banning cryptocurrencies and imposing fines on anyone trading or holding such assets.

Crypto firms are stepping up their senior ranks to shape the emerging regulatory environment and tackle lingering skepticism about digital tokens.

Bitcoin’s most ardent supporters see it as a modern store of value and hedge against inflation, while others fear a speculative bubble is forming.