President Donald Trump’s administration is planning to impose new limits on the activities of the cryptocurrency industry, as part of an effort to combat what he has called “the biggest scam in the history of the world.”
The Department of the Treasury said Tuesday it will “determine if there is sufficient evidence of a potential manipulation of cryptocurrency markets,” and if there are, it will propose regulations.
In an effort “to address a growing concern” with high-speed trading of bitcoin and other cryptocurrencies, the Trump administration is also considering measures that would ban certain high-volume trading.
Trump is pushing for regulations to address the cryptocurrency sector, where the cryptocurrency market value has skyrocketed in recent months as the U.S. dollar has been weak against the rest of the international currency markets.
The Treasury said the administration is considering a measure that would prohibit high-priced trading of cryptocurrencies.
The measure would also impose “significant regulatory requirements on the market participants, as well as the entities and individuals who participate in the market.”
It would also prohibit the “illegal and deceptive” use of cryptocurrencies, and prohibit the exchange of “excess market value” of bitcoin for “excessive” fiat currency.
“This will prevent the rapid expansion of cryptocurrencies as a means of speculation and money laundering and will reduce the ability of criminals and others to use them for nefarious purposes,” the Treasury statement said.
Trump, who has long argued that cryptocurrencies are a “hoax,” has been a vocal supporter of cryptocurrencies and has made no secret of his desire to ban the currency.
He has even said he wants to ban cryptocurrency outright.
“It’s the biggest scam of all time,” Trump told The Wall Street Journal last week.
“It’s not even close.
It’s the greatest scam in history.
It has never been done.
The only way you’re going to stop it is to stop the money coming in.
And if you stop the amount coming in, the money will stop coming in.”
The administration’s statement said that the proposed regulation will address a “fraudulent market for bitcoin” and will “restrict the trading of bitcoins by high-risk participants and high-pressure brokers.”
The U.K. Financial Conduct Authority, which oversees financial services in the U.”s capital, is expected to release a report on the potential impact of the new regulations on financial services.