Cryptocurrencies Should Be 'Outlawed’, Allianz GI CEO Claims

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Andreas Utermann, the chief executive officer of Allianz Global
Investors, has recently argued cryptocurrencies like bitcoin
should be “outlawed” as he believes these have been harmful to
retail investors who put their money into them.
Utermann’s comments come as the cryptocurrency ecosystem
has been enduring a near year-long bear market that has seen
various cryptocurrencies lose most of their value. Bitcoin, the
flagship cryptocurrency, is down about 82% from its all-time
high, while Ethereum’s ether has seen its price drop 93% from
its all-time high.
According to Reuters, during a panel discussion in London
Utermann claimed regulators should “outlaw” cryptocurrencies,
and added:

"I am personally surprised that regulators
haven’t stepped in harder."

His comments were reportedly made as he was sitting next to the
head of Britain’s Financial Conduct Authority, Andrew Bailey.
Responding to Utermann, Bailey noted that he believes
cryptoassets have “no intrinsic value,” and added the Financial
Conduct Authority is indeed “watching that very closely.”
Reuters notes Baily said authorities have also been surveilling
initial coin offerings (ICOs ), which are an alternative way for
firms to raise funds. Notably, as CryptoGlobe covered, the
chairman of the US Securities and Exchange Commission (SEC)
Jay Clayton has recently argued ICOs are an “effective way to
raise capital ,” if rules are followed.
Earlier this month South Korean finance minister nominee Hong
Nam-ki revealed plans to tax ICOs and cryptocurrencies in the
country. Per Hong, cryptos are a “new phenomenon” that
currently lacks an internationally agreed upon regulatory
framework. This means there are certain problems to be
addressed in the market, including a lack of investor protection.
Earlier this year, as CryptoGlobe covered, Allianz chief economic
advisor Mohamed El-Erian argued that an emerging cashless
society may lead to government-backed cryptocurrencies. He
argued cryptos will have a role in the future, but as officially
sanctioned currencies.

Source : https://www.cryptoglobe.com/