British lawmakers have backed calls for greater regulation of cryptocurrencies such as bitcoin in order to bring an element of control to a market that more resembles the "Wild West."
In a report on digital currencies published Wednesday, the Treasury Select Committee called for regulations to protect consumers and prevent money laundering.
Lawmakers highlighted a rapidly emerging industry that's been troubled by wild price swings, allegations of fraud and worries it could be used to finance criminal or terrorist activity.
Marshall Billingslea, an assistant treasury secretary who deals with terror financing, attends a OECD in Paris, Wednesday Sept.19, 2018. Billingslea says there is an urgent need for global rules to stop virtual currencies from being used by money launderers and terrorists. (AP PhotoJohn Leicester)
Virtual currencies, also known as tokens, are electronic alternatives to traditional money. The appeal of cryptocurrencies like bitcoin lies in their use of "blockchain technology" that records all transactions in a digital database while keeping identities private, allowing users to sidestep government or banking system oversight. Speculation has also played a part in their popularity: bitcoin's price skyrocketed late last year to more than $19,000 though it has since tumbled and is now trading at around $6,300.
In the report, the committee said the British government has taken an ambiguous position on regulation and argued that the industry's voluntary approach is inadequate. As a result, it said investors have been left open to risks including volatile prices and hacking vulnerabilities.
"Bitcoin and other crypto-assets exist in the Wild West industry of crypto-assets," committee chair Nicky Morgan said. "This unregulated industry leaves investors facing numerous risks."
Morgan said the government needs to do more than "bumble along issuing feeble warnings to investors."
The committee also said British financial authorities need more power to regulate misleading advertisements by crypto-asset exchanges and initial coin offerings, which raise money for the tokens while crypto exchanges allow investors to trade them or convert them into conventional money.
The committee's warning echo those of a senior U.S. Treasury official, who expressed similar sentiments while on a visit to Europe, saying that global rules are urgently needed to stop virtual currencies from being used by money launderers and terrorists.
In Paris, Marshall Billingslea, an assistant Treasury secretary who deals with terror financing, said the Islamic State group has used virtual currencies and published instructions on Twitter on how to move bitcoin to recipients in Syria.
This, he said, is "an example of a very worrisome trend-line that we see."
Billingslea, who was speaking in his capacity as president of the Financial Action Task Force, an international body that combats money laundering and other financial threats, said countries are applying differing anti-money laundering standards to cryptocurrencies and some are not applying any at all.
"It is essential that we establish a global set of standards that are applied in a uniform manner," Billingslea said.
The FATF, he added, is very concerned about the emerging use cryptocurrencies by terrorist organizations.
Financial regulators worldwide have been scrambling to deal with the rise of cryptocurrencies. In Asia, Japan recognizes bitcoin as a legal form of payment after enacting a strong regulatory regime while South Korea and China have also tightened regulations. Meanwhile, European Union officials said earlier this month that the bloc has been examining cryptocurrencies as it mulls regulations.
The British lawmakers said there's still room for the U.K. to become a global center for crypto-assets, if the government decides to take a regulatory approach that encourages the industry's growth.
AP Writer John Leicester in Paris contributed to this report.
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PARIS (AP) — French President Emmanuel Macron warned Thursday that Europe could “die” if it fails to build its own robust defense as Russia’s war in Ukraine rages on, or if it fails to undertake major trade and economic reforms to compete with China and the U.S.
Macron urged Europeans to become more ambitious in a fast-changing world to face the challenges of war, fierce trade competition, energy scarcity, climate change and increasing authoritarianism.
In a nearly two-hour speech at Sorbonne University in Paris, Macron said that the continent is divided and “too slow and lacks ambition” at a time when the 27-member European Union needs to become a superpower, defend its own borders and speak with one voice if it wants to survive and thrive.
“Our Europe today is mortal,” Macron said. “It can die and that depends solely on our choices,” he added. He called on people to make those choices now because, “it’s today that Europe is between war and peace.”
Russia's full-scale invasion of Ukraine, now in its third year, is an existential threat and Europe isn't armed enough to defend itself when “confronted by a power like Russia that has no inhibitions, no limits,” Macron said.
‘Our ability to ensure our security is at stake," Macron said. “Russia mustn’t be allowed to win.”
Europe now has the “good fortune” of having the Biden administration’s commitment to supporting Ukraine, Macron said. But, in a year of key elections around Europe, in the U.S. and elsewhere, support may fragment or disappear entirely, he added.
“Europe must become capable of defending its interests, with its allies by our side whenever they are willing, and alone if necessary,” Macron said.
Strong armies, a European rapid intervention program and force, tanks, a missile shield and other weapons, produced in Europe, will need the support of “a joint diplomatic force that will speak with one voice and build bridges with Africa and Latin America,” the French leader said.
“Only then will Europe show that it's not a United States’ lap dog, and that it also knows how to talk to other regions of the world,” he said.
France has been a firm supporter of Ukraine in its fight against Russian aggression, and Macron has often clashed with other Western leaders as he has insisted that Europe must stand by the country at any cost. The French president alarmed European leaders by saying recently that sending Western troops into Ukraine to shore up its defenses shouldn’t be ruled out.
Referring to trade practices of China and the U.S., Macron said “the two world powers have decided not to respect the rules of global trade” by shoring up protections and subsides while Europe’s industry remains open and is stuck in overregulation.
“Let’s do the same, we are in competition,” Macron said.
“We must buy faster, we must produce more and we must buy more that is made in Europe. That is key,” Macron said.
Thursday's speech came less than two months before a pivotal European Parliament election.
Macron, an avid advocate of a united and assertive Europe, also rallied support for his centrist Renaissance party before the June 6-9 vote as far-right parties lead the moderate coalitions in the polls. He called for safeguarding democratic values as the “authoritarian model” was becoming “more popular” across the continent.
The war in Ukraine and immigration are top priorities for European Union voters, according to polls. Far-right parties have gained support by criticizing Macron’s government policies on both issues. Macron acknowledged divisions on immigration policies, including on asylum and deportation rules for those who have arrived to Europe illegally.
He emphasized the need for an effective response and Europe-wide coordination for curbing illegal immigration, closer cooperation with immigrants' countries of origin and a unified, relentless fight against human traffickers.
Macron criticized the idea of striking an agreement, as Britain as done, with countries in Africa and elsewhere to transfer immigrants there.
“This is a betrayal of our values that ultimately leads us to dependency on other counties,” Macron said.
The British government earlier this week approved a law allowing the deportation of some migrants who enter the country illegally to Rwanda.
Macron lost his majority in France’s most influential house of parliament, the National Assembly, after the 2022 election to the far-left coalition and the far-right National Rally party.
The social situation in France remains tense as Paris prepares to host the Olympic Games this summer, amid protests from teachers and police officers, and farmer demonstrations in recent weeks. The protests follow huge rallies last year against Macron’s ultimately successful proposal to increase the retirement age from 62 to 64.
Barbara Surk reported from Nice, France. Lorne Cook contributed to this report from Brussels.
French President Emmanuel Macron delivers a speech on Europe in the amphitheater of the Sorbonne University, Thursday, April 25 in Paris. 2024. French President Emmanuel Macron will outline his vision for Europe as a more assertive global power at the backdrop of war in Ukraine, security, and economic challenges in a speech ahead of pivotal election for the European Parliament in June. (Christophe Petit Tesson, Pool via AP)
French President Emmanuel Macron delivers a speech on Europe in the amphitheater of the Sorbonne University, Thursday, April 25 in Paris. 2024. French President Emmanuel Macron will outline his vision for Europe as a more assertive global power at the backdrop of war in Ukraine, security, and economic challenges in a speech ahead of pivotal election for the European Parliament in June. (Christophe Petit Tesson, Pool via AP)
French President Emmanuel Macron delivers a speech on Europe in the amphitheater of the Sorbonne University, Thursday, April 25 in Paris. 2024. French President Emmanuel Macron will outline his vision for Europe as a more assertive global power at the backdrop of war in Ukraine, security, and economic challenges in a speech ahead of pivotal election for the European Parliament in June. (Christophe Petit Tesson, Pool via AP)
French President Emmanuel Macron delivers a speech on Europe in the amphitheater of the Sorbonne University, Thursday, April 25 in Paris. 2024. French President Emmanuel Macron will outline his vision for Europe as a more assertive global power at the backdrop of war in Ukraine, security, and economic challenges in a speech ahead of pivotal election for the European Parliament in June. (Christophe Petit Tesson, Pool via AP)
French President Emmanuel Macron delivers a speech on Europe in the amphitheater of the Sorbonne University, Thursday, April 25 in Paris. 2024. French President Emmanuel Macron will outline his vision for Europe as a more assertive global power at the backdrop of war in Ukraine, security, and economic challenges in a speech ahead of pivotal election for the European Parliament in June. (Christophe Petit Tesson, Pool via AP)
French President Emmanuel Macron delivers a speech on Europe in the amphitheater of the Sorbonne University, Thursday, April 25 in Paris. 2024. French President Emmanuel Macron will outline his vision for Europe as a more assertive global power at the backdrop of war in Ukraine, security, and economic challenges in a speech ahead of pivotal election for the European Parliament in June. (Christophe Petit Tesson, Pool via AP)
French President Emmanuel Macron delivers a speech on Europe in the amphitheater of the Sorbonne University, Thursday, April 25 in Paris. 2024. French President Emmanuel Macron will outline his vision for Europe as a more assertive global power at the backdrop of war in Ukraine, security, and economic challenges in a speech ahead of pivotal election for the European Parliament in June. (Christophe Petit Tesson, Pool via AP)
French President Emmanuel Macron delivers a speech on Europe in the amphitheater of the Sorbonne University, Thursday, April 25 in Paris. 2024. French President Emmanuel Macron will outline his vision for Europe as a more assertive global power at the backdrop of war in Ukraine, security, and economic challenges in a speech ahead of pivotal election for the European Parliament in June. (Christophe Petit Tesson, Pool via AP)
French President Emmanuel Macron arrives to deliver a speech on Europe in the amphitheater of the Sorbonne University, Thursday, April 25 in Paris. 2024. French President Emmanuel Macron will outline his vision for Europe as a more assertive global power at the backdrop of war in Ukraine, security, and economic challenges in a speech ahead of pivotal election for the European Parliament in June. (Christophe Petit Tesson, Pool via AP)
French President Emmanuel Macron delivers a speech on Europe in the amphitheater of the Sorbonne University, Thursday, April 25 in Paris. 2024. French President Emmanuel Macron will outline his vision for Europe as a more assertive global power at the backdrop of war in Ukraine, security, and economic challenges in a speech ahead of pivotal election for the European Parliament in June. (Christophe Petit Tesson, Pool via AP)
French President Emmanuel Macron delivers a speech on Europe in the amphitheater of the Sorbonne University, Thursday, April 25 in Paris. 2024. French President Emmanuel Macron will outline his vision for Europe as a more assertive global power at the backdrop of war in Ukraine, security, and economic challenges in a speech ahead of pivotal election for the European Parliament in June. (Christophe Petit Tesson, Pool via AP)
French President Emmanuel Macron speaks during a media conference at an EU summit in Brussels, Thursday, April 18, 2024. European Union leaders on Wednesday debated a new "European Competitiveness Deal" aimed at helping the 27-nation bloc close the gap with Chinese and American rivals amid fears the region's industries will otherwise be left behind for good. (AP Photo/Omar Havana)
